SP Group sells Odisha port to Adani in Rs 3,350 crore deal – Times of India

by The Technical Blogs



MUMBAI: Shapoorji Pallonji Group has agreed to sell its 56% stake in Gopalpur Port in Odisha to Adani Ports for an enterprise value of Rs 3,350 crore, of which the equity consideration is Rs 1,300 crore.
In Dec 2023, the construction-to-real estate group, led by Shapoor Mistry, had sold its 50% share in Dharamtar Port in Maharashtra to JSW Infrastructure. After the latest deal, SP will be left with an under-construction port in Chhara, Gujarat.
The share sale in Gopalpur is part of SP’s strategy to divest non-core assets to pare debt of Rs 20,000 crore. Over the last few years, the group has sold assets worth Rs 11,000 crore to strengthen its balance sheet.
Next on the cards is to sell a part of its interests in engineering major Afcons Infrastructure through an IPO. Afcons, which SP had acquired from ICICI Bank, and which today is worth over $2 billion (Rs 16,685 crore), has been preparing itself for an IPO in recent months. The last time a group company tapped the primary market was Sterling and Wilson Renewable Energy in August 2019.
SP, which has built the Sultan of Oman’s palace and the Atal tunnel, had acquired Gopalpur Port from metal trader Sara International and entrepreneur Mahimananda Mishra of Orissa Stevedores in 2017. It subsequently turned the port’s performance around. Currently, the port handles 12-15 million tonnes of cargo annually. The remaining 44% stake in the port is held by Orissa Stevedores. As on Feb 14, 2023, the port had bank facilities of Rs 1,432 crore, according to credit rater Care Edge.
The deal will help Adani Ports to expand its play, which in Q3FY24 handled 109 million metric tonnes of cargo. During the same period, it had completed the purchase of Karaikal Port in Puducherry and sold a 49% stake in Ennore Terminal to Switzerland’s Mediterranean Shipping Company. Adani Ports, the largest private port network in the world with a presence in India, Sri Lanka, Australia and Israel, is now looking to enter Africa, a source said.
The Gopalpur Port deal comes just after SP, which holds 18.4% stake in Tata Sons, sold its interests in data centre construction business to a group of domestic investors.
Most of the assets that SP sold have been bought by marquee names such as Advent (purchased Eureka Forbes) Actis (thermal power project in Bangladesh), National Investment and Infrastructure Fund (Jammu Udhampur highway) and Reliance Industries (Sterling and Wilson Renewable Energy).





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