Adani Ports and Special Economic Zone (APSEZ), the country's largest private port and logistics company, increased its stake in Krishnapatnam Port in Nellore district of Andhra Pradesh to 100 per cent from 75 per cent. Adani Ports acquired Vishwasamudra Holdings' 25 per cent stake in Krishnapatnam Port for Rs 2,800 crore. The 100 per cent acquisition of Krishnapatnam Port implies a 10.3 times multiple on FY21 earnings before interest, tax, depreciation and amortization (EBITDA) and further enhances shareholder value, Adani Ports said in a statement.
Last month, Adani Ports had acquired controlling stake in Gangavaram Port (GPL) in Andhra Pradesh from DVS Raju Family for Rs 3,604 crore, taking its stake in Gangavaram Port to 89.6 per cent.
"Krishnapatnam Port is located on the east coast of India in Nellore district of Andhra Pradesh (180 km from Chennai Ports) close to the border between Andhra Pradesh and Tamil Nadu. Krishnapatnam Port is an all-weather, deep water port has multi-cargo facility with a current capacity of 64 million metric tonnes per annum (MMTPA). With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MMTPA and a 50-year concession," Adani Ports said in a press release.
"The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ's stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India. Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product and cargo enhancement strategy while enhancing return on capital employed. We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port we will transform Krishnapatnam into a manufacturing and industrial hub," Karan Adani, chief executive officer and whole-time director of APSEZ, said in a statement.
Adani Ports shares were trading 2.34 per cent lower at Rs 719, in line with the Sensex which was down 2.5 per cent.