Adani Ports and Special Economic Zone Ltd (APSEZ) has completed the acquisition of a 10.4% stake in Gangavaram Port (GPL) from the Government of Andhra Pradesh with consideration of INR6.45 billion (US$87.29 million).   

In April 2021, APSEZ acquired 31.5% from Windy Lakeside Investment Ltd and signed an agreement for a controlling stake of 58.1% held by DVS Raju and Family. Post the merger of GPL and APSEZ, DVS Raju and family will receive around 48 million shares resulting in a 2.2% stake in APSEZ worth INR36.04 billion (US$487 million).

The boards of APSEZ and Gangavaram Port have also approved the merger of GPL with APSEZ taking into consideration GPL’s valuation of INR20 (US$0.27) per share and fair value of APSEZ at INR754.8 (US$10.21) per share, resulting in a swap ratio of 159 shares in APSEZ for 1,000 shares in GPL for 58.1% stake held by DVS Raju and Family in GPL. The merger is expected to conclude by March 31, 2022.

GPL is a 64 million metric tonnes (MMT) capacity non-major port, established under the concession from the Government of Andhra Pradesh (GoAP), that extends till 2059. It is the gateway internal port, spreading over 8 states across Eastern, Western, Southern and Central India.