Adani Ports now owns Krishnapatnam Port

Adani Ports and Special Economic Zone (NSE symbol: ADANIPORTS), which was already a controlling stakeholder in Vishwa Samudra Holdings in Krishnapatnam Port went ahead and bought the remaining 25% ownership to make the latter its wholly owned subsidiary.

ADANIPORTS paid Rs 2,800 crore for the 25% that completes its ownership to 100% and makes it the sole owner of the port.

This port is located on the east coast of India in Nellore district of Andhra Pradesh. Its characteristics include being all-weather, deep port, multi-cargo facility. The current capacity of the port is 64 million tonnes per annum (MTPA).

With a waterfront of 20 km and 6,800 acres of land, the port has a master plan capacity of 300 MTPA and a 50-year concession.

In a statement, the company informed some valuation figures, “Together with the 75 per cent ownership acquired in October 2020, the acquisition implies an enterprise value of Rs 13,675 crore implying an EV/ FY21 EBITDA multiple of 10.3x.”

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The company elaborated on its plans, “We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port we will transform Krishnapatnam into a manufacturing and industrial hub.”

ADANIPORTS is the stakeholder in developing and operating ports which represents about one-fourth (24% to be exact) of India’s total port capacity. Its ports handle huge amounts of cargo from coastal areas and hinterlands.

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