Adani Ports acquires Karaikal Port for ₹14.85 bln via NCLT route

Adani Ports and Special Economic Zone Ltd has acquired Karaikal Port Pvt Ltd after receiving approval from the National Company Law Tribunal, for 14.85 bln rupees, the company said in an exchange filing today.

Earlier, Adani ports was declared successful applicant under the corporate insolvency resolution process.

Karaikal Port is an all-weather deep water port commissioned in April 2009. Spread across 600 acres, it handles cargo such as coal, sugar, cement, fertilisers, project cargo, agro commodities, liquid cargo and containers.

Bidding for the Karaikal Port was conducted under the Insolvency and Bankruptcy Code, 2016. The lenders to the port met in December to approve the offer made by the Adani Group. It was then submitted to the National Company Law Tribunal for final approval.

According to the company, Karaikal Port handled about 10 million tonnes of cargo in the 2022–23 (Apr–Mar) fiscal year, and the acquisition consideration of 14.85 billion rupees suggests an earnings before interest, taxes, depreciation, and amortisation multiple of about eight times on the EBITDA number.

Marg Ltd, a company headquartered in Chennai, owns 45% of Karaikal Port, while Ascent Capital Advisors India Pvt Ltd, Jacob Ballas Capital India Pvt Ltd, Affirma Capital India, and GIP India collectively own 44%.

Adani Ports will increase its footprint on India's eastern coast with the addition of Karaikal Port, following the addition of Andhra Pradesh's Krishnapatnam and Gangavaram ports over the previous two years. On the eastern coast, it also manages ports and terminals at Dhamra, Kattupalli, Ennore, and Visakhapatnam.

The company said, "APSEZ will spend further 8.5 bln rupees over time to upgrade infrastructure in order to reduce the logistics cost for the customers."