Adani Ports is in advanced talks to acquire Gopalpur Ports in Odisha
07 Dec 2023
In a significant move aligning with its strategic expansion plan, Adani Ports and Special Economic Zone (SEZ) are reportedly in advance discussions with Shapoorji Pallonji Group to acquire Gopalpur Ports in Odisha. The proposed deal is estimated to be valued at approximately Rs. 1,100–1,200 crore in equity.
Sources reveal that SP Ports Maintenance currently holds a majority stake of 56% in Gopalpur Ports, with the remaining ownership belonging to Odisha Stevedores (OSL). If successful, this acquisition would mark Adani Ports and SEZ's sixth venture into multi-purpose facilities along the eastern coast, in line with their string-of-pearls strategy covering both eastern and western water margins.
The due diligence process for the deal is currently underway. However, uncertainties persist regarding the finalization of the deal. Notably, JSW Infrastructure has also expressed interest in acquiring the same asset, with discussions centering on a Rs. 3000 crore enterprise valuation. The Mistry family, currently associated with the port, is reportedly dissatisfied with the proposed offering.
The Gopalpur Ports enterprise value is estimated to be around Rs. 5,000 crore, with the Mistry’s equity valued at Rs. 2,000 crore, as indicated in a company presentation reviewed by financial daily reports. The port holds long-term bank facilities totaling Rs. 1,432 crore as of February 2023, according to credit firm Care Edge.
Shapoorji Pallonji Group had previously divested a 50% stake in the 5 million tons per annum (MTPA) PNP Maritime Services (PNP Port) to JSW Infrastructure. The transaction, valued at Rs. 270 crore in cash, had an enterprise value of Rs. 700 crore. The funds generated from this sale are earmarked for repaying non-convertible debenture (NCD) holders of a Rs. 14,300-crore, rupee-denominated zero-coupon bond.
Established in 2015, Gopalpur Ports strategically sits between the bustling Paradip Port and Vizag Port. Furthermore, it is seamlessly connected to the Golden Quadrilateral through NH-516.
As negotiations progress, industry watchers eagerly await the outcome of these talks that could reshape the maritime landscape along the eastern coast.