Adani Ports acquires Karaikal Port for ₹1,485 crore

Karaikal Port, which Adani Ports recently acquired, is an all-weather deep-water port in Puducherry with five operational berths. Adani Ports and Special Economic Zone (APSEZ) announced that it had completed the acquisition of Karaikal Port (KPPL) with the approval of the National Company Law Tribunal (NCLT). APSEZ had previously been declared a successful resolution applicant under KPPL's Corporate Insolvency Resolution Process (CIRP). Karaikal Port is an all-weather deep-water port in Puducherry with five operational berths, three railway sidings, total land area of over 600 hectares and a built-in cargo handling capacity of 21.5 MMT. Acquisition consideration of 1,485 crores implies an EV/EBITDA multiple of 8x on FY23 estimated numbers, said APSEZ in a statement. The port, according to the statement, is close to the containerized cargo-originating industrial centres of Tamil Nadu, as well as the upcoming 9 MMTPA CPCL refinery. With the acquisition of Karaikal port, APSEZ now operates 14 ports in India, said APSEZ CEO and full-time director Karan Adani. APSEZ will invest an additional 850 crores in infrastructure upgrades over time to reduce logistics costs for customers. We plan to double the port's capacity in the next five years and add a container terminal to make it a multipurpose port, he added. The Karaikal Port was built in the Karaikal District of the Union Territory of Puducherry, about 300 kilometres south of Chennai. It is the only major port between Chennai and Tuticorin, and its strategic location gives the port easy access to Central Tamil Nadu's industrially rich hinterland. The port has a water draught of 14 metres and a land area of over 600 acres. Adani Ports and Special Economic Zones, India's largest private port and logistics company, is the flagship transportation arm of the diversified Adani group. Also Read Fourth Arm of Raidurg Metro Station to be opened today Escape by Creatomy Introduces exciting console tables