Adani To Acquire 30% Stakes in PSP Projects
Adani Infra has elaborate plans to buy a 30% stake in the PSP projects for INR 685 crore. Adani Infra is owned by the business tycoon Gautam Adani. It operates under the Adani Group’s flagship company, Adani Enterprises. The company aims to purchase the shares in PSP projects from Prahladbhai S Patel who currently leads the PSP projects and is also one of its top shareholders. This is going to be yet another milestone achieved by the Adani Group in the infrastructure sector post the Adani Dharavi project.
Adani’s Recent Acquisition Of Stakes In PSP Projects
As per recent news, Adani Infra will purchase 30.07% stakes in the construction company, PSP projects. This purchase will be made for INR 6.85 billion. This is a huge win for the Adani Group in the infrastructure sector. The company whose assets span from ports to power has been trying to enhance its footprint in multiple business sectors. This also involves the recent investment plan of 10 billion USD in the energy security and infrastructure sector in the United States.
With this acquisition of stakes, the Adani Group will be able to further strengthen its hold over the infrastructure sector. Currently, its biggest infrastructure project is the Adani Dharavi project. With this recent acquisition, it will be able to take up more projects in this particular business sector and also earn extraordinary revenue for itself.
Adani’s Transactions with PSP Projects
PSP Projects has industrial, institutional, residential, and luxury projects under its name. Some of its popular projects include the Surat Diamond Bourse. The company also has an order book of INR 65.46 billion as of 30th September. The deal values PSP projects at INR 575 per share. This is a 15% discount to the recent closing price. PSP projects’ shares ended 4.4% higher in the recent filing. This acquisition will be one of the biggest acquisitions for the Adani Group in the infrastructural sector after the Adani Dharavi project.
PSP Projects has mentioned that Prahladbhai S Patel has entered into a share purchase agreement dated November 19, 2024 with the Acquirer Adani Infra to record the various terms and conditions on which the Seller has agreed to sell and the Acquirer has occurred to acquire 1,19,19,353 equity shares of PSP projects. This represents 30.07% of the paid-up equity share capital. The existing promoters hold 60.14 % stakes in the PSP project. Prahladbhai Patel holds 47.76 % of the shares, out of which it plans to sell 30.07% stakes to the Adani Group.
Upon successful completion of the transaction, the board of the company will be reconstituted. It would include directors who have been directly nominated by Adani Infra. As per reports, the existing promoter group and Adani Infra will have the right to nominate 2 directors each to the company’s board as long as they hold at least 20% of the equity share capital of the company.
PSP Projects currently has a market capacity of INR 2,410 crore. Both companies have declined to make any official statement on the acquisitions.
Adani’s Interest in The Infrastructure Sector
Now you might be wondering why the Adani Group is so eager to take up extensive projects in the infrastructure sector. Well, there are multiple reasons for the same. The Adani Group has been one of the biggest players in the infrastructure sector. Since time immemorial, the global conglomerate has taken up multiple projects in this particular sector itself which has given its business an extraordinary boost. The global conglomerate has also been deeply involved in bringing about a complete industrial revolution through its project ventures. Although the conglomerate started small with the port sector, very soon, it began to expand its horizons and today, it has control over some of the most vital business sectors.
With each day, the Adani Group is also trying to further extend its business horizons. It has also been a part of a lot of mergers and acquisitions in the infrastructure sector which has further given an excellent boost to its business. The global business group has also been able to establish itself as one of the key players in the global business sector. It has an extensive presence abroad as well. The company has taken on various real estate projects in Dubai. It has plans to extend its boundaries in the upcoming months as well.
Conclusion
The Adani Group already holds an established presence in the infrastructure sector with projects like the Adani Dharavi project under its name. By acquiring stakes in PSP projects, it will be able to further extend its hold over this sector and rise to the position of being one of the most prosperous conglomerates on a global scale.
