Adani Ports share rose almost 3% on acquiring 31.50% stakes in Gangavaram Port:
Adani Ports: It is one of the largest multi-port operator companies in India located in Ahmedabad, Gujarat. While the company works under the subsidiary of Adani Group, which is an integrated infrastructure corporation. Initially, the company was also known as Mundra Port and Special Economic Zone Limited and later it changed into Adani Ports SEZ Limited. The companies operate at Mundra Port and currently operate 10 ports across India, which consists of 45 berths and 14 terminals across 6 states. The present Chairman & Managing Director of the company is Gautam Adani.
Meanwhile, on Thursday, March 4th, the shares of the company surged almost 3% in the stock market. The main reason for this is the company will acquire 31.50% stakes in Gangavaram Ports (GPL) from Windy Lakeside Investment, a subsidiary of Warburg Pincus.
Moreover, the company will acquire almost 16.30 crore equity shares i.e., (31.50%) for Rs. 120 per each. However, the total acquisition cost stood at Rs. 1,954 crores. On the other side, the amalgamation of stakes is subject to regulatory approvals, said the company in filing.
Besides, the company is ready to acquire the remaining stakes i.e., (58.10%) stakes from DVS Raju & Family. They hold almost 30 crore equity share in Gangavaram Port Limited (GPL).
Whereas, the Gangaravam Port is one of the largest ports in Andhra Pradesh with almost 64 MMT capacity establishment under the Government of Andhra Pradesh (GoAP) up to 2059.
In the financial year 2020-21, the GPL reported a cargo volume of 34.50 MMT. While the revenue of the company stood at Rs. 1,082.00 crores in FY20. On the other side, the companies EBITDA stood at Rs. 634 crores and profit after tax (PAT) stood at Rs. 516 crores. The company is debt-free with a cash balance of Rs. 500 crores.
GPL located north of AP, so as a strategic complement to our recent acquisition of the Krishnapatnam Port that serves the south of AP. We believe that GPL has great potential to complement its bulk cargo terminals with new cargo categories that we intend to develop, said Karan Adani, CEO of Adani Ports SEZ.
The company reached its 52-week high at Rs. 754.65 on March 3rd, 2021, and a 52-week low at Rs. 203.40 on March 23rd, 2020 respectively.
Whereas the Citi global research firm maintained buy call on the stock with a target price of Rs. 935 per equity share.
However, the shares of Adani Ports SEZ Limited reported a bullish trend in the stock market on Thursday. It gained 21.70 points with a 2.97% increase and reached 751.55 INR. While in BSE, the company gained 22.55 points with a 3.09% increase and reached 752.10 INR.
Stock Market on March 4th:
On Thursday, both Sensex and Nifty reported a bearish trend in the stock market after bullish reports in the last three sessions of the market. The Sensex is trading below 50,900 levels and nifty trading below 15,100 levels in the stock market. The Sensex lost 598.57 points with a 1.16% decrease and reached 50,846.08 levels. While the nifty l0st 164.85 points with a 1.08% decrease and reached 15,080.75 levels.
On the other side, the number of coronavirus cases in India on Thursday, March 4th reached 1,11,56,923 with almost 1,57,435 deaths.
In the border markets, the S&P BSE SmallCap index reported a bullish trend in the stock market on Thursday. It gained 168.78 points with a 0.80% increase and reached 21,254.07 levels. Whereas the S&P BSE MidCap gained 100.29 points with a 0.48% increase and reached a 20,984.19 level. But, the Nifty Bank lost 565.55 points with a 1.56% decrease and reached 35,802.50 level.
Top Gainers on March 4th: ONGC, Adani Ports, Infosys, BPCL, and Wipro are the top gainers in today’s stock market.
Top Losers on March 4th: Tata Steel, JSW Steel, HDFC, Bajaj Finserv, and HDFC Bank are the top losers in today’s stock market.