APSEZ acquires 75 per cent stake in KPCL
Adani Ports and SEZ completes acquisition of KPCL for Rs 12,000 cr
PORTS & SHIPPING

APSEZ acquires 75 per cent stake in KPCL

Adani Ports and Special Economic Zone (APSEZ) on 5 October completed the acquisition of the Krishnapatnam Port Company (KPL) in Andhra Pradesh for an enterprise value of Rs 120 billion. But, this enterprise value is lower compared to the deal that APSEZ signed with KPL at the beginning of the year. Present enterprise value is 13 per cent lower than the original deal value of Rs 135 billion.

This strategic and significant move will result in APSEZ having a controlling stake of 75 per cent in KPCL and will help in accelerating its progress towards 500 million tonnes cargo handling capacity by 2025.

KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India. In FY21, KPCL is expected to generate an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately Rs 12 billion, resulting in an acquisition EV (enterprise value) or EBITDA multiple of 10.

Andhra Pradesh government gave a green signal for this acquisition last month. APSEZ already control ports like Kattupalli and a terminal at the Kamarajar Port in Ennore, suburban Chennai. With this new addition, they will have 12 ports in their kitty and this will result in APSEZ controlling a third of the country’s total port capacity.

The distance between Krishnapatnam and Bengaluru is 400 km and the port can help to attract industries even in Tamil Nadu’s industrial town of Hosur to export or import.

Adani is also developing a deep seaport at Vizhinjam near Thiruvananthapuram which could help the company in offering a range of options to its users to connect with global destinations.

With acquiring controlling stakes in some of the major airports such as Mumbai and aiming to become India’s largest private airport operator, Adani is on its way to emerge as an infrastructural giant in the near future.

Adani Ports and Special Economic Zone (APSEZ) on 5 October completed the acquisition of the Krishnapatnam Port Company (KPL) in Andhra Pradesh for an enterprise value of Rs 120 billion. But, this enterprise value is lower compared to the deal that APSEZ signed with KPL at the beginning of the year. Present enterprise value is 13 per cent lower than the original deal value of Rs 135 billion.This strategic and significant move will result in APSEZ having a controlling stake of 75 per cent in KPCL and will help in accelerating its progress towards 500 million tonnes cargo handling capacity by 2025.KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, the state with the second-largest coastline of in India. In FY21, KPCL is expected to generate an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately Rs 12 billion, resulting in an acquisition EV (enterprise value) or EBITDA multiple of 10.Andhra Pradesh government gave a green signal for this acquisition last month. APSEZ already control ports like Kattupalli and a terminal at the Kamarajar Port in Ennore, suburban Chennai. With this new addition, they will have 12 ports in their kitty and this will result in APSEZ controlling a third of the country’s total port capacity.The distance between Krishnapatnam and Bengaluru is 400 km and the port can help to attract industries even in Tamil Nadu’s industrial town of Hosur to export or import.Adani is also developing a deep seaport at Vizhinjam near Thiruvananthapuram which could help the company in offering a range of options to its users to connect with global destinations.With acquiring controlling stakes in some of the major airports such as Mumbai and aiming to become India’s largest private airport operator, Adani is on its way to emerge as an infrastructural giant in the near future.

Next Story
Infrastructure Urban

USA Mortgage Rates Reach 6.95%

In July 2024, the average mortgage rate in the USA rose to 6.95%, marking a significant increase and impacting homebuyers nationwide. This upward trend in mortgage rates is attributed to several economic factors, including inflationary pressures, shifts in the Federal Reserve?s monetary policy, and broader market dynamics. The rise in mortgage rates presents challenges for potential homebuyers, making borrowing more expensive and potentially slowing down the housing market. Higher rates can lead to increased monthly payments for homeowners, reducing affordability and potentially deterring new ..

Next Story
Real Estate

Toronto Home Sales Increase 4.2%

In June 2024, home sales in Toronto experienced a notable rise, increasing by 4.2% compared to the previous month. This growth highlights a positive trend in the Toronto real estate market, indicating robust buyer activity and a favorable environment for sellers. Several factors contribute to this uptick, including attractive mortgage rates, strong demand for housing, and a stable economic backdrop. The Toronto Regional Real Estate Board (TRREB) reported this increase, pointing to heightened buyer confidence and competitive market conditions. Despite rising interest rates in other parts of Nor..

Next Story
Real Estate

New Zealand Boosts Home Construction

New Zealand is set to implement regulatory changes aimed at boosting home construction to address the nation's housing shortage. The government plans to streamline building consent processes, reduce construction costs, and increase the supply of affordable housing. This initiative is part of a broader strategy to make housing more accessible and alleviate the pressure on the housing market. Key elements of the regulatory overhaul include simplifying the approval process for new housing projects and reducing bureaucratic hurdles that often delay construction. By cutting red tape, the government..

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram