Gautam Adani-led Adani Group, which has been under attack from the Congress and Aam Admi Party for its proximity to Narendra Modi, who is set to become India’s Prime Minister on Friday, announced the acquisition of Dhamra Port in Odisha from Larsen & Toubro and Tata Steel. The announcement came even as the BJP was leading in the counting of votes. Adani Ports and Special Economic Zone, on Friday, said it had executed a definitive agreement with L&T Infrastructure Development Projects Ltd. and Tata Steel to acquire 100 per cent stake in the Dhamra Port Company at an enterprise value of Rs.5,500 crore.
“The Dhamra Port acquisition now gives us an opportunity to replicate the development and phenomenal growth of the Mundra port on the eastern coast of India and thereby continue to execute on our pan India strategy” said Mr. Adani.
Adani Ports said that following the acquisition, the second phase of development would be initiated within 90 days and would complete [it] in 30 months. This continued expansion would allow the Dhamra Port exceed 100 million tonnes of cargo capacity by the year 2020.
The transaction is subject to customary conditions precedent, including lenders / third party approvals.
PTI reports:
Stocks on a rollStocks of three listed firms of Gujarat-based Adani group, on Friday, ended as much as 6 per cent higher on the clear mandate given by voters to the BJP-led NDA. Adani Enterprises’ stock that gained 16.87 per cent to Rs.585 — its 52-week high intra-day, finally ended at Rs.530.90, up 6.06 per cent on the BSE. Adani Ports and Special Economic Zone rose by 1.95 per cent to Rs.224.65, while Adani Power was up 1.27 per cent to Rs.55.65.
Adani Enterprises, the flagship company of the Adani group, has gained the most among the three-listed firms. Shares of Adani Enterprises jumped over three-fold, Adani Ports climbed 65.36 per cent and Adani Power gained 53.94 per cent since September 13 last year. The collective market valuation of these three firms rose by over Rs.62,000 crore in eight months to over Rs.1 lakh crore.
Published - May 16, 2014 11:24 pm IST
