Adani Ports and Special Economic Zone has acquired a 25% stake in Vishwa Samudra Holdings in Krishnapatnam Port. The APSEZ has acquired these stake holdings for Rs 2,800 crore. However, the main motive behind this transaction will result in the APSEZ increasing its stake from 75% to 100% in Krishnapatnam Port. Further, it implies that 100% acquisition shoes a 10.3 times multiple on FY21 earnings before interest tax, depreciation, and amortization. Also, it enhances shareholders’ value of the Adni Port and Special Economic Zone. We have seen that last month only Adani Port had acquired a controlling stake in Gangavaram Port in Andhra Pradesh from DVS Raju Family for Rs 3,604 crore. This has makes the stake in Gangavaram Port 89.6%. The Adani Port will have now increased the shareholder’s value. This will further work in favor of APSEZ.
This Port has been the main attraction due to its amazing location. As it is located on the east coast of India in the Nellore district of Andhra Pradesh. This is close to the border between Andhra Pradesh and Tamil Nadu. The main attraction of this port is that it is an all-weather deep water port that has a multi-cargo facility with a current capacity of 64 million metric tonnes per annum. It has a waterfront of 20k. And 6,800 acres of land. All these forces have made the port a master plan to the capacity of 300 MMTPA and a 50-year concession.
Krishnapatnam Port handles double traffic by 2025
This port has various things to attract towards it. According to the sources it was found that this port can now handle double the traffic. This will be done by 2025. The process is going on and if it continues it will deliver high growth through a multi-product and cargo enhancement strategy. The APSEZ has also said in this context that they have been working to make proper use of it and also they are confident that they will be able to double throughput and triple EBITDA at Port by 2025.
Adani Port Stock Price
The APSEZ has been acquiring a stake in Krishnapatnam Port. Also, we can see that APSEZ was trading 2.34% lower than its Rs 719.