APSEZ acquires 75 per cent stake in KPCL
PORTS & SHIPPING

APSEZ acquires 75 per cent stake in KPCL

Adani Ports and Special Economic Zone (APSEZ) on 5 October completed the acquisition of the Krishnapatnam Port Company (KPL) in Andhra Pradesh for an enterprise value of Rs 120 billion. But, this enterprise value is lower compared to the deal that APSEZ signed with KPL at the beginning of the year. Present enterprise value is 13 per cent lower than the original deal value of Rs 135 billion.

This strategic and significant move will result in APSEZ having a controlling stake of 75 per cent in KPCL and will help in accelerating its progress towards 500 million tonnes cargo handling capacity by 2025.

KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India. In FY21, KPCL is expected to generate an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately Rs 12 billion, resulting in an acquisition EV (enterprise value) or EBITDA multiple of 10.

Andhra Pradesh government gave a green signal for this acquisition last month. APSEZ already control ports like Kattupalli and a terminal at the Kamarajar Port in Ennore, suburban Chennai. With this new addition, they will have 12 ports in their kitty and this will result in APSEZ controlling a third of the country’s total port capacity.

The distance between Krishnapatnam and Bengaluru is 400 km and the port can help to attract industries even in Tamil Nadu’s industrial town of Hosur to export or import.

Adani is also developing a deep seaport at Vizhinjam near Thiruvananthapuram which could help the company in offering a range of options to its users to connect with global destinations.

With acquiring controlling stakes in some of the major airports such as Mumbai and aiming to become India’s largest private airport operator, Adani is on its way to emerge as an infrastructural giant in the near future.

Adani Ports and Special Economic Zone (APSEZ) on 5 October completed the acquisition of the Krishnapatnam Port Company (KPL) in Andhra Pradesh for an enterprise value of Rs 120 billion. But, this enterprise value is lower compared to the deal that APSEZ signed with KPL at the beginning of the year. Present enterprise value is 13 per cent lower than the original deal value of Rs 135 billion.This strategic and significant move will result in APSEZ having a controlling stake of 75 per cent in KPCL and will help in accelerating its progress towards 500 million tonnes cargo handling capacity by 2025.KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India. In FY21, KPCL is expected to generate an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately Rs 12 billion, resulting in an acquisition EV (enterprise value) or EBITDA multiple of 10.Andhra Pradesh government gave a green signal for this acquisition last month. APSEZ already control ports like Kattupalli and a terminal at the Kamarajar Port in Ennore, suburban Chennai. With this new addition, they will have 12 ports in their kitty and this will result in APSEZ controlling a third of the country’s total port capacity.The distance between Krishnapatnam and Bengaluru is 400 km and the port can help to attract industries even in Tamil Nadu’s industrial town of Hosur to export or import.Adani is also developing a deep seaport at Vizhinjam near Thiruvananthapuram which could help the company in offering a range of options to its users to connect with global destinations.With acquiring controlling stakes in some of the major airports such as Mumbai and aiming to become India’s largest private airport operator, Adani is on its way to emerge as an infrastructural giant in the near future.

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000