Adani Ports to acquire rest 25% stake in Andhra Pradesh-based Krishnapattanam port

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Biznextindia : Gautam Adani controlled Adani Ports and Special economic Zone Limited (APSEZ)  has signed an Agreement on April 1 with Vishwa Samudra Holdings to acquire rest 25 per cent of Andhra Pradesh based Krishnapattnam port for a consideration of Rs.2800 crores.

Shares of Adani Ports and Special Economic Zone (APSEZ) advanced 0.04 per cent per cent to Rs 736.55 on the BSE in the intra-day deals on Monday after the company announced acquisition of rest 25 per cent stake in Krishnapattnam port.

Post this acquisition, the port will a wholly owned subsidiary of APSEZ which will further consolidate its presence in the East India. On October 5, 2020, the company had completed the acquisition of Krishnapattnam port for Rs.12000 crore.

Last month Adani ports had announced the acquisition of controlling stake of 58.1 per cent in another Andhra Pradesh based port Gangavaram Port for Rs.3604 crore.

These acquisitions are in line with APSEZ’s strategy of East Coast to West Coast parity and will provide an access to growth from new hinterland markets as it has coverage in resource rich and industrial belt in Eastern, Central & Southern India. The company is already operating the Dhamara port in Odisha.

Incorporated in March 1996, Krishnapatnam Port is an all-weather, deep water port and has multi-cargo facility with a current capacity of 64 MMTPA. The port is engaged in the business of handling containers, coal, break bulk and other bulk cargo including liquid cargo. In 2019-20 the port has reported a revenue of Rs. 1975 crore, a drop of 17 per cent over the previous year’s (2018-29) revenue of Rs. 2394 crore.

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