The country's largest ports and logistics company APSEZ on Wednesday said it is acquiring Windy Lakeside Investment's 31.5 percent stake in Gangavaram Port Ltd for Rs 1,954 crore.

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The company also looks to acquire another 58.1 percent share in GPL, APSEZ said in a statement. Gangavaram Port Ltd (GPL) is located in the northern part of Andhra Pradesh next to Vizag Port in Visakhapatnam, the Adani Ports and Special Economic Zones (APSEZ) Ltd said in a statement.

"APSEZ Ltd, a key subsidiary of the diversified Adani Group, is acquiring the 31.5 percent stake held by Windy Lakeside Investment Limited (an affiliate of Warburg Pincus) in Gangavaram Port Limited (GPL). The acquisition is valued at Rs 1,954 crore and subject to regulatory approvals," the company statement said.

According to the statement, GPL is the second largest non major port in Andhra Pradesh with a 64 MMT (metric million tonne) capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059.

It is an all-weather, deep-water, multi-purpose port capable of handling fully laden super cape size vessels. Currently, GPL operates 9 berths and has free hold land of 1,800 acre. The company has a master plan capacity for 250 MMTPA with 31 berths.

GPL handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, western, southern and central India.

APSEZ further said, "GPL has a paid up equity share capital of 51.7 crore shares of which 58.1 percent or 30 crore is owned by DVS Raju and Family (Promoter). APSEZ is also in discussions with DVS Raju & Family for their 58.1 per cent stake or 30 crore share in GPL."

The rest 10.4 percent stake in GPL, the company said is held by the Government of Andhra Pradesh. In the statement, Karan Adani, CEO and Whole Time Director of APSEZ said, "We believe that GPL holds great potential to complement its bulk cargo terminals with new cargo categories that we intend to develop."

The port provides great access to an adjacent hinterland that was largely untapped by APSEZ thereby placing the company in a position to serve a broader set of port customers as well as expand our overall hinterland logistics footprint for a much larger base of customers, he said.

Vishal Mahadevia, managing director / head of Warburg Pincus India said, "From a green field project at the time of investment, Gangavaram Port has developed into a world class port. We have been very pleased with our partnership with the Raju family and the Gangavaram Port team, and look forward to the port's continued success in partnership with the Adani Group."

DVS Raju, chairman of Gangavaram Port Limited said, "We look forward to the Adani Group's contributions in the next phase of the port's growth."

(Edited by : Jomy)

First Published:Mar 3, 2021 11:11 PM IST