Adani Ports To Buy 95% Stake In Odisha's Gopalpur Port For Rs 3,350 Crore

The Shapoorji Pallonji Group is set to sell off its brownfield Gopalpur Port in Odisha to Adani Ports and SEZ Ltd. for an enterprise value of Rs 3,350 crore. As per the deal details, Adani Ports will buy a total of a 95 per cent stake in the port for an equity value of Rs 1,349 crore, including 56 per cent from Shapoorji Pallonji Group and 39 per cent stake from Stevedores. Speaking on the same, Karan Adani, managing director at Adani Ports, said in a statement, “Gopalpur Port will add to the Adani Group’s pan-India port network, increase east coast vs west coast cargo volume parity, and strengthen APSEZ’s integrated logistics approach.”

Similarly, a spokesperson for the real estate conglomerate explained that the planned divestments of Gopalpur Port and Dharamtar Port at significant enterprise value show the group’s ability to turn around assets and create stakeholder value in a relatively short time, capitalising the company’s core strengths in project development and construction.

Notably, while the Gopalpur Port is known for its handling of bulk cargo including iron ore, coal, limestone, ilmenite, and alumina, Adani Ports and the Special Economic Zone (APSEZ) operate around 12 ports and terminals on the west and east coasts of India.

More details about the deal

The sale of the Gopalpur Port to Adani Ports and SEZ Ltd. comes months after Shapoorji Pallonji Group sold another of its ports. The real estate company previously sold off its Dharamtar Port to JSW Infrastructure Limited for Rs 710 crore. Earlier, it was reported that SP Group has initiated talks with private equity firms to sell its stake in the Gopalpur Port and also a part of its shareholding in infrastructure development firms, Afcons Infrastructure.

Talking about the recent sale, Shapoorji Pallonji Group acquired it in 2017 and started port operations after constructing the port’s infrastructure and establishing ties. Presently, the port is capable of handling 20 million tonnes of freight every year and runs at high-efficiency levels. Besides, the Gopalpur Port and Petronet LNG have also decided to build a greenfield LNG regasification station, which will provide the port with steady and long-term cash flows.

Meanwhile, advice to sell off the port was given by Deutsche Bank.