Adani Ports SEZ gets control of Krishnapatnam Port

The company acquired controlling stake of 75 per cent in India’s second largest private sector port and said the acquisition will accelerate handling of 500 million tonnes (MT) throughput by 2025.

 With this acquisition, APSEZ is expecting its market share in FY21 to increase from 21 per cent to 25 per cent. “APSEZ, India’s largest port developer, operator and the logistics arm of the Adani Group, today announced the completion of the acquisition of KPCL for an enterprise value of Rs 12,000 crore. This will result in APSEZ having a controlling stake of 75 per cent in KPCL from the CVR Group and other investors,” the company said in a statement.

 KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, a state which has the second largest coastline in India. The company said: “In FY21, the port is expected to generate an EBITDA of approximately Rs 1,200 crore, resulting in an acquisition EV/ EBITDA multiple of 10x”.

 This acquisition will accelerate APSEZ’s stride towards 500 MMT (metric million tonnes) by 2025 and is another step in implementing APSEZ’s stated strategy of cargo parity between west and east coasts of India, it added.