Description
Karaikal Port has a draft of 14 meters and covers an area of more than 600 hectares (File) Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Saturday that it has completed the acquisition of Karaikal Port Pvt Ltd (KPPL) in accordance with the approval of the National Company Law Tribunal (NCLT). APSEZ had previously been declared a candidate for resolution under KPPL's Corporate Insolvency Resolution Process (CIRP). Karaikal Port is an all-weather deepwater port in Pondicherry with five operational berths, three rail sidings, a total area of more than 600 hectares and an integrated cargo handling capacity of 21.5 MMT.
"An acquisition consideration of Rs 1,485 crore implies an EV/EBITDA multiple of 8x over FY23 estimated figures," APSEZ said in a statement.
According to the statement, the port is close to the industrial centers of origin of Tamil Nadu's containerized cargoes and the future 9 MMTPA CPCL refinery.
APSEZ CEO and full-time director, Karan Adani, said: “With the acquisition of Karaikal Port, APSEZ now operates 14 ports in India. APSEZ will spend an additional Rs 850 crore over time to upgrade infrastructure and reduce logistics costs for customers.
“We plan to double the port's capacity in the next five years and also add a container terminal to make it a multi-use port,” he added.
Karaikal Port was commissioned in 2009 and was developed in the Karaikal District of the Union Territory of Pondicherry, about 300 km south of Chennai.
It is the only major port between Chennai and Tuticorin, and its strategic location allows the port easy access to the rich industrial hinterland of central Tamil Nadu.
The port has a draft of 14 meters and covers an area of more than 600 hectares.
Adani Ports and Special Economic Zones, the flagship transportation arm of the diversified Adani Group, is India's largest private ports and logistics company.
