Shares of Adani Group's ports and logistics company Adani Ports and Special Economic Zone (APSEZ) rose 1.5 percent on Tuesday after the company received approvals from NCLT Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1 percent stake in Gangavaram Port Limited (GPL).

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GPL will now become a 100 percent subsidiary of APSEZ. The stock of the company was trading 0.6 percent higher at Rs 812.9 on BSE at 10:19 am.

“Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our growth of cargo volumes,” said Karan Adani, CEO and Whole-time Director of APSEZ.

The Gangavaram Port is located in the northern part of Andhra Pradesh next to Vizag Port and is the third largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the government of Andhra Pradesh that extends till 2059. The port has a capacity to handle fully laden super cape-size vessels of up to 200,000 DWT.

"The port handles a diverse mix of dry and bulk commodities, including coal, iron ore, fertiliser, limestone, bauxite, sugar, alumina, and steel. Gangavaram Port is the gateway port for a hinterland spread over eight states across eastern, southern and central India," the company said in its exchange filing.

The acquisition is priced at around Rs 6,200 crore, and the company has already acquired 31.5 percent stake in the port from Warburg Pincus and 10.4 percent from the government of Andhra Pradesh during FY22. It will now acquire of 58.1 percent stake from DVS Raju and family through a share swap arrangement.

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