Andhra Pradesh: Adani’s Acquisition Of Gangavaram Port Hits Roadblock As Existing Promoter Wants Deal In Cash

The DVS Raju family, promoters of Gangavaram Port Ltd who own a 58.1 percent stake in the port are renegotiating their sale of the port to Adani Ports and Special Economic Zone Ltd (APSEZ) to include a cash component.

APSEZ, India’s largest private port and logistics company, in March acquired 58.1 per cent stakes at a cost of Rs 3,604 crore. Previously held by DVS Raju and family, APSEZ has also previously acquired a 31.5 per cent stake from Warburg Pincus on 3 March 2021, and now owns 89.6 per cent of all stakes in Gangavaram port.

The deal with the Raju family was a share swap with six shares of Gangavaram were to be exchanged for one share of Adani Ports.

Thus, DVS Raju family wants half the sale consideration – Rs 1,800 crore - in cash, a source told Moneycontrol.

Gangavaram Port is the second largest non-major port in Andhra Pradesh after Vizag port, with a capacity of 64 MMT (million metric tonnes). It is located in the northern part of Andhra Pradesh.

The port was also established under a concession from the Government of Andhra Pradesh, which extends till 2059. The port operates at nine berths, and free-hold land of 1,800 acres with a master plan capacity of up to 250 MMT, with sufficient headroom for growth.