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Adani included that APSEZ will target to boost cargo volume at KPCL to 100 MMT in around 7 years and will double its EBIDTA in around 4 years through its procedure enhancements and market finest practices.

Recently, the company had actually forayed into cold chain logistics by acquiring 40.25 percent stake in Snowman Logistics for Rs 296 crore.

Ahead of the statement, shares of Adani Ports closed Friday’s trade at Rs 382.70, down 0.20 per cent, on the BSE.

By Chitranjan Kumar

Billionaire Gautam Adani-led Adani Ports and Special Economic Zone (APSEZ) on Friday said it will acquire a bulk stake in Krishnapatnam Port Company (KPCL) from Hyderabad-based CVR Group for Rs 13,572 crore. “The business means to acquire 75 percent stake of Krishnapatnam Port Company Limited from its existing shareholders,” Adani Ports said in a filing to the Bombay Stock Exchange.

KPCL is participated in business of dealing with containers, coal, break bulk and other bulk cargo consisting of liquid freight. It is a multi-cargo facility and handled 54 million metric tonnes (MMT) of freight in the fiscal year 2018-19. The profits for FY19 was Rs 2,394 crore.

The acquisition worth of KPCL is roughly Rs 13,500 crore. The purchase factor to consider will be funded through internal accruals and existing cash balance, it stated. The acquisition, which is subject to regulative approval, is expected to be completed within 120 days.

Adani Ports stated that the investment is in line with the company’s strategy to increase its footprint in Andhra Pradesh, including that this acquisition will speed up APSEZ’s stride towards 400 MMT by 2025.

Also Read: Adani Ports ventures into cold chain logistics, acquires 40.25 %stake in Snowman Logistics

“The credit metrics of APSEZ combined are not anticipated to change with this deal. The net financial obligation to EBIDTA of combined APSEZ, consisting of KPCL in FY21 is expected to be around 3.2 x (which is in line with the pre-acquisition of net debt to EBIDTA of 3.1 x in FY19),” said Adani Ports.

Talking about the development, Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ stated, “… this acquisition would accelerate our stride towards FY25 vision of handling 400 MMT of freight. Offered the best-in-class facilities and the distinct hinterland catered by KPCL, this acquisition will not just increase our market share to 27 percent however also include amazing value to our pan-India footprint.”

KPCL is engaged in the service of managing containers, coal, break bulk and other bulk freight consisting of liquid cargo. The acquisition worth of KPCL is around Rs 13,500 crore. Commenting on the development, Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ stated, “… this acquisition would accelerate our stride towards FY25 vision of handling 400 MMT of freight.