Mumbai: Adani Ports (APSEZ) on Monday informed the exchanges of completion of a strategic investment in Krishnapatnam Port (KPCL)
APSEZ said the acquisition of KPCL was completed for Rs 12,000 crores. The deal was first reported to the exchanges as on Jan 3, 2020.
With the announcement, APSEZ will have a controlling stake of 75 per cent in KPCL from the CVR Group and other investors.
This acquisition will accelerate APSEZ's stride towards 500 MMT by 2025 and is another step in implementing APSEZ's stated strategy of cargo parity between west and east coasts of India, Adani Ports said in a regulatory filing.
Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said: "This transformational acquisition enables us to roll out world class customer service to an increased customer base and provide pan-India solution to them.
He added that the company's experience of turning around acquisitions like Dhamra and Kattupalli ports will enable it in harnessing the potential of KPCL.
"With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would be future ready to handle 500 MMT. We will replicate our operations and maintenance philosophy at KPCL, continue to focus on environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders," Adani said.
Stocks of Adani Enterprises recorded a gain of nearly 6 percent in intra-day trading on the Bombay Stock Exchange. Shares hit Rs 326.60 (52 wk high of 334.60).
Adani Ports and Special Economic Zone (APSEZ), meanwhile, declined marginally by 0.98% to trade at Rs 349.80 per share.