Gautam Adani-led Adani Infra, a subsidiary of Adani Enterprises, has approached the Competition Commission of India (CCI) seeking approval to acquire a majority stake in PSP Projects Ltd. The Ahmedabad-based PSP Projects specialises in industrial, institutional, residential, and luxury developments, including the Surat Diamond Bourse. As of September 2024, it held an order book valued at Rs 65.46 billion.

The proposed deal involves Adani Infra acquiring equity shares of PSP Projects from its promoter, Prahaladbhai S. Patel, and public shareholders through an open offer. 

Following the transaction, Adani Infra, Patel, and other existing promoters are expected to hold equal stakes in the company, according to the CCI filing.

Adani Infra’s notification to CCI was made under Section 6(2) of the Competition Act, 2002, which requires prior approval for combinations exceeding specified thresholds. The company asserted that the transaction would not disrupt market dynamics or adversely impact competition in India. For competitive assessment, the relevant markets could include real estate development, airport operations, cement manufacturing, and infrastructure services.

In November 2024, Adani Infra announced plans to acquire a 30.07% stake in PSP Projects for Rs 6.85 billion, strengthening its construction capabilities. Patel currently holds 47.76% of PSP Projects, of which he is selling 30.07%. Post-transaction, Adani Infra and the existing promoters will each hold 30.07%, with Adani Infra required to launch an open offer for an additional 26% stake. This would make Adani Infra the largest shareholder in PSP Projects.

The acquisition aligns with Adani Group’s strategy of expanding its footprint across diverse sectors, consolidating its position as a leading player in India’s infrastructure landscape.

(ET)