Adani Ports announced the approval of proposed acquisition of 10.4 percent stake of Gangavaram Port Ltd (GPL) on Tuesday by the company from the state Government of Andhra Pradesh.
The proposed acquisition of 10.4 percent equity share of GPL is rupees 644.78 crore and the transaction is expected to be completed within a month.
Adani Ports said in a Securities and Exchange Commission (SEC) filing late on Tuesday, “The company has received letter/order from Andhra Pradesh Maritime Board dated 23rd August, 2021 received on 24th August, 2021 intimating the approval of proposal of acquisition of 10.4% stake of GPL by the company from Government of Andhra Pradesh."
The company said that the acquisition is in line with the company's strategy of East Coast to West Coast consistency and will provide an access to growth from new hinterland markets as it has inclusion iin resource rich and industrial belt in over Eastern, Central & Southern India.
The proposed acquisition is context to the approvals under applicable laws which includes approval of the Competition Commission of India (CCI).
Shares of Adani Ports breached more than 2 percent higher to rupees 713 per share on the BSE in the opening deals on Wednesday.
Gangavaram Port based in Visakhapatnam, Andhra Pradesh was incorporated in September 2001 which is engaged in the business of handling different types of dry bulk and break bulk cargo.
The operational proceeds for the financial year 2020-21 was rupees 1,057 crore.