Adani Ports gets complete ownership of Krishnapatnam Port, acquires 25 per cent stake of Vishwasamudra Holdings

Adani Ports & Special Economic Zone Limited (APSEZ), country’s leading commercial ports operator, announced this morning that it has acquired complete ownership of Krishnapatnam Port by acquiring Vishwasamudra Holdings’ 25 per cent stake for Rs 2,800 crore.  

This will cause the enterprise value of the company to rise to Rs 13,675 crore, which will result in the company’s EV/EBITDA multiple for FY21 to be 10.3x.   

Krishnapatnam Port, located on the east coast of India in Nellore district of Andhra Pradesh is an all-weather, deep water port with a multi-cargo facility and a current capacity of 64 million metric tonnes per annum (MMTPA). It has 6,800 acres of land, a waterfront of 20 km along with a master plan capacity of 300 MMTPA and a 50-year concession.  

In FY21, the port is expected to have volumes of 38 MMT. The revenue and EBITDA from the port are expected to be Rs 1,840 crore and Rs 1,325 crore, respectively. Since the acquisition, Krishnapatnam Port’s primary focus has been on business process re-engineering which has increased EBITDA margins by 15 per cent from 57 per cent in FY20 to 72 per cent in FY21.  

At 12.32 pm, the share price of Adani Ports & Special Economic Zone Ltd was trading at Rs 723.20 on BSE, which was a decrease of 1.77 per cent from Thursday’s close of Rs 736.25.