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 Urban

Budget 2025: Key Highlights

On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 in Parliament. This marks the eighth budget by Sitharaman, making her the first finance minister in India’s history to present so many budgets. It is also the first budget of Prime Minister Narendra Modi’s third term.Sitharaman emphasised that the budget focuses on driving growth towards a “Viksit Bharat” (Developed India), with the country maintaining its position as the fastest-growing major economy. She outlined the government’s commitment to inclusive development, im..

Next Story
Infrastructure Urban

Budget 2025-26: Industry reactions

Union Finance Minister, Nirmala Sitharaman announced Budget 2025-26 today. The government has planned a number of strategic initiatives which will drive inclusive growth, boost economic growth and provide an impetus to to India’s competitive edge on the global stage.Here’s what industry has to say about various announcements and initiatives announced in the budget:Real Estate“The Union Budget 2025 is a game-changer, reinforcing India's commitment to inclusive and sustainable urban growth. The SWAMIH Fund 2 with Rs 15,000 crore will accelerate the completion of stalled housing projects, b..

Next Story
Infrastructure Urban

Budget 2025: Key Announcements Impacting Real Estate

Key takeaways for the real estate sector include:• Income tax relief for the middle class: The finance minister announced zero income tax for individuals earning up to Rs 12 lakh annually, providing a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50 per cent of existing provisions while introducing personal tax reforms and rationalising TDS and TCS regimes by streamlining rates and thresholds.• Tax benefits for residential property investors: Investors can now claim nil valuation for..

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