APSEZ Acquires Karaikal Port For Rs 1,485 Crore
PORTS & SHIPPING

APSEZ Acquires Karaikal Port For Rs 1,485 Crore

Adani Ports and Special Economic Zone Ltd (APSEZ), the largest transport utility in India, has completed the acquisition of Karaikal Port Private Limited (KPPL) pursuant to NCLT approval. Earlier, APSEZ was declared as the successful resolution applicant under the Corporate Insolvency Resolution Process (CIRP) of KPPL.

The Government of Puducherry created Karaikal Port, an all-weather deep-water port on the eastern coast of India, according to the Build, Operate and Transfer model. The Karaikal Port was built in the Karaikal District of the Union Territory of Puducherry, around 300 KMS south of Chennai, and it was inaugurated in 2009. It is the only significant port between Chennai and Tuticorin, and thanks to its advantageous location, it has easy access to Central Tamil Nadu's industrially prosperous hinterland.

The port has a land area of more than 600 acres and a 14-meter water draft. Its current infrastructure consists of 5 operational ports, 3 railway sidings, a huge cargo storage area with open yards, 10 covered warehouses, and 4 liquid storage tanks, as well as a mechanized bulk cargo handling system, including mechanical wagon-loading and truck-loading systems. The port's capacity for built-in cargo handling is 21.5 MMT, and its main commodities include cement, fertilizer, limestone, steel, and liquids. The new 9 MMTPA CPCL refinery in Tamil Nadu's Nagapattinam offers Karaikal Port the chance to handle a significant increase in liquid cargo.

Commenting on the occasion, Mr Karan Adani, CEO and Whole-time Director, APSEZ said, “The acquisition of Karaikal Port is another milestone in consolidating our position as India’s largest transport utility. With acquisition of Karaikal port APSEZ now operates 14 ports in India. APSEZ will spend further INR 850 crores over time to upgrade infrastructure in order to reduce the logistics cost for the customers. We are envisaging to double the capacity of the port in the next 5 years and also add container terminal to make it a multipurpose port.”

With 10 MMT of cargo handled at Karaikal Port in FY 2023 and an acquisition price of INR 1,485 crores, the port's EV/EBITDA multiple on FY23's EBITDA is implied to be 8x.

See also:
Adani Ports & SEZ wins bid for Karaikal Port
Adani, JSW, Jindal express interest in auction of Karaikal Port


Adani Ports and Special Economic Zone Ltd (APSEZ), the largest transport utility in India, has completed the acquisition of Karaikal Port Private Limited (KPPL) pursuant to NCLT approval. Earlier, APSEZ was declared as the successful resolution applicant under the Corporate Insolvency Resolution Process (CIRP) of KPPL. The Government of Puducherry created Karaikal Port, an all-weather deep-water port on the eastern coast of India, according to the Build, Operate and Transfer model. The Karaikal Port was built in the Karaikal District of the Union Territory of Puducherry, around 300 KMS south of Chennai, and it was inaugurated in 2009. It is the only significant port between Chennai and Tuticorin, and thanks to its advantageous location, it has easy access to Central Tamil Nadu's industrially prosperous hinterland. The port has a land area of more than 600 acres and a 14-meter water draft. Its current infrastructure consists of 5 operational ports, 3 railway sidings, a huge cargo storage area with open yards, 10 covered warehouses, and 4 liquid storage tanks, as well as a mechanized bulk cargo handling system, including mechanical wagon-loading and truck-loading systems. The port's capacity for built-in cargo handling is 21.5 MMT, and its main commodities include cement, fertilizer, limestone, steel, and liquids. The new 9 MMTPA CPCL refinery in Tamil Nadu's Nagapattinam offers Karaikal Port the chance to handle a significant increase in liquid cargo. Commenting on the occasion, Mr Karan Adani, CEO and Whole-time Director, APSEZ said, “The acquisition of Karaikal Port is another milestone in consolidating our position as India’s largest transport utility. With acquisition of Karaikal port APSEZ now operates 14 ports in India. APSEZ will spend further INR 850 crores over time to upgrade infrastructure in order to reduce the logistics cost for the customers. We are envisaging to double the capacity of the port in the next 5 years and also add container terminal to make it a multipurpose port.” With 10 MMT of cargo handled at Karaikal Port in FY 2023 and an acquisition price of INR 1,485 crores, the port's EV/EBITDA multiple on FY23's EBITDA is implied to be 8x. See also: Adani Ports & SEZ wins bid for Karaikal Port Adani, JSW, Jindal express interest in auction of Karaikal Port

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