Majority Stake in Gopalpur Port Purchased by Adani

Adani Ports and Special Economic Zone (APSEZ) of India has finalized a deal to acquire a 95% share in Gopalpur Port Limited. This acquisition involves purchasing shares from two entities, with a 56% share acquired from the SP Group and a 39% share from Orissa Stevedores. The transaction values the port at an enterprise value of approximately INR 3,080 crore ($369.6 million), with an additional contingent payment of about $32.4 million anticipated 5.5 years post-acquisition, depending on specific conditions.

Situated on India's eastern coast, Gopalpur port has a capacity to manage 20 million metric tonnes per annum (mtpa). In 2006, the Government of Odisha granted GPL a 30-year concession for its operation, including options for two subsequent 10-year extensions.

Gopalpur port is recognized for its deep-water capabilities and the ability to handle a wide variety of dry bulk commodities such as iron ore, coal, limestone, ilmenite, and alumina. The port's concession agreement grants significant flexibility in terms of design and expansion based on market needs. Additionally, GPL has secured over 2 square kilometers of land on lease for its development, with provisions for further land acquisition to support expansion requirements in the future.

Karan Adani, the managing director of APSEZ, emphasized the strategic importance of this acquisition, stating, “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint.” 

For the fiscal year 2024, it's projected that GPL will process approximately 11.3 million metric tonnes of cargo, marking a 52% increase in cargo volume and a 39% rise in revenue compared to the previous year.