Adani In Talks To Acquire Shapoorji Pallonji Group’s Gopalpur Port In Odisha

Bhubaneswar: India’s largest private port operator Adani Ports and Special Economic Zone is in early talks with Shapoorji Pallonji Group to acquire Gopalpur Port in Odisha at an estimated equity value of Rs 1,100-1,200 crore, The Economic Times reported on Thursday.

While SP Ports Maintenance holds 56% of Gopalpur Ports, the remaining ownership is with Orissa Stevedores (OSL).

This potential sixth acquisition would help Adani Ports bolster its presence facilities along the eastern coast, where it already has about 247 million tonnes of capacity. It is also in line with its strategic approach of establishing a network of facilities across both eastern and western coastal regions, known as the “string-of-pearls” strategy. “However, people in the know said there is no guarantee the ongoing negotiations will eventually translate into a transaction,” the national daily added.

The ET report further said that JSW Infrastructure had earlier expressed interest in acquiring the Gopalpur Port, but the Mistry family was reportedly dissatisfied with the proposed offer of Rs 3,000 crore enterprise valuation.

It added that the SP Group had told investors during a company presentation that the enterprise value of the port is Rs 5,000 crore with the Mistry family’s equity value standing at Rs 2,000 crore.

Gopalpur Port, operational since 2015, holds long-term bank facilities amounting to Rs 1,432 crore as on February, according to credit rating firm Care Edge.

Notably, the Odisha cabinet recently decided to develop a utility corridor between Gopalpur Port and Tata Steel Industrial Park in Ganjam district. A tender worth Rs 128.88 crore has been approved for the project and it will be executed by the state Industrial Development Corporation.