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Shares of Adani Ports and Special Economic Zone Ltd. plunged by four percent in morning trade on Friday after the company announced that its arm will shore up its warehousing business through a joint venture.

Adani Logistics Ltd., a subsidiary of Adani Ports and Special Economic Zone, will form a joint venture with the DA Group to explore opportunities in the warehousing business.

The purpose of the joint venture agreement is to develop and operate logistics and warehousing parks in Ahmedabad and Kolkata. Adani Logistics entered into a joint venture agreement on Thursday with DA Group and its affiliates— Durgesh Infrastructure Pvt. Ltd.

Under the agreement, Adani Ports SEZ and the DA Group will have a 50 percent stake each in the joint venture company.

Further, Adani Logistics will nominate three directors to the board of the new joint venture entity, while the DA Group will nominate two directors.

Also Read: No conclusion yet on Karaikal Port resolution, Adani Ports clarifies on news reports

Adani Ports recorded a 6 percent year-on-year growth in container volumes while dry bulk cargo increased by 2 percent in the month of November. The total cargo handling reached 25.3 million metric tonnes (MMT) in November.

Adani Ports handled 228 MMT of cargo during April-November, 9 percent higher than the corresponding period last year.

The company's consolidated net profit increased 65.5 percent to Rs 1,737.81 crore while revenue from operations rose 32.8 percent to Rs 5,210.80 crore in the September 2022 quarter.

Shares of Adani Ports SEZ are trading 7.03 percent lower at Rs 796.70.

(Edited by : Rukmani Krishna)