Adani's Gangavaram Port acquisition faces bottlenecks
Equipment

Adani's Gangavaram Port acquisition faces bottlenecks

Promoters of Vishakhapatnam's Gangavaram Port are renegotiating the sale of the port to Adani Ports and Special Economic Zone (APSEZ), fearing Adani Port's ties with the Myanmar military.

The DVS Raju family, which owns a 58.1% stake in Gangavaram, wants a cash consideration for half their stake instead of an all-share deal finalised earlier, sources told the media.

On March 23, Adani Ports had announced that it had struck a deal to acquire the Raju family's stake in Gangavaram for Rs 3,604 crore. Earlier that month, APSEZ had purchased a 31.5% stake from Warburg Pincus for Rs 1,954 crore. Both these deals valued Gangavaram at Rs 120 per share. According to sources cited earlier, the deal with the Raju family was a share swap – six shares of Gangavaram were to be exchanged for one share of Adani Ports. The closing price of Adani Ports shares on March 22 was Rs 721.6.

The Raju family is concerned that Adani Ports' valuation will be hit after S&P Dow Jones Indices removed the stock from its sustainability index and some Scandinavian investors sold their holdings, citing ESG (environment, social and corporate governance concerns), the banker said.

On April 13, S&P Dow Jones Indices said it would remove Adani Ports from its sustainability index following reports of its business ties with Myanmar's military that has been accused of human rights violations after a coup.

When a company is removed from an index that is widely followed, it stands to lose value as funds tracking the benchmark will also cut it out. Following the S&P announcement, Adani Ports shares fell around 4% over the next four days but have since recouped losses. At Wednesday's close, APSEZ was trading at Rs 738.10 a share, up nearly 2.3% from the March 22 close.

Image Source


Also read: Adani to acquire 58% stake in Gangavaram port

Promoters of Vishakhapatnam's Gangavaram Port are renegotiating the sale of the port to Adani Ports and Special Economic Zone (APSEZ), fearing Adani Port's ties with the Myanmar military. The DVS Raju family, which owns a 58.1% stake in Gangavaram, wants a cash consideration for half their stake instead of an all-share deal finalised earlier, sources told the media. On March 23, Adani Ports had announced that it had struck a deal to acquire the Raju family's stake in Gangavaram for Rs 3,604 crore. Earlier that month, APSEZ had purchased a 31.5% stake from Warburg Pincus for Rs 1,954 crore. Both these deals valued Gangavaram at Rs 120 per share. According to sources cited earlier, the deal with the Raju family was a share swap – six shares of Gangavaram were to be exchanged for one share of Adani Ports. The closing price of Adani Ports shares on March 22 was Rs 721.6. The Raju family is concerned that Adani Ports' valuation will be hit after S&P Dow Jones Indices removed the stock from its sustainability index and some Scandinavian investors sold their holdings, citing ESG (environment, social and corporate governance concerns), the banker said. On April 13, S&P Dow Jones Indices said it would remove Adani Ports from its sustainability index following reports of its business ties with Myanmar's military that has been accused of human rights violations after a coup. When a company is removed from an index that is widely followed, it stands to lose value as funds tracking the benchmark will also cut it out. Following the S&P announcement, Adani Ports shares fell around 4% over the next four days but have since recouped losses. At Wednesday's close, APSEZ was trading at Rs 738.10 a share, up nearly 2.3% from the March 22 close. Image SourceAlso read: Adani to acquire 58% stake in Gangavaram port

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement