Adani Ports may buy out Warburg in Gangavaram

Adani Ports & Special Economic Zone Ltd is likely to buy Warburg Pincus' stake in Gangavaram Port of Andhra Pradesh, two sources in the know told Informist.

According to the sources, Warburg's stake in Gangavaram Port is valued at 150 rupees per share and instead of cash, Warburg would proportionately be given shares of Adani Ports. Both the parties are said to have signed a binding agreement to this effect with a formal announcement later tonight.

Located near Visakhapatnam, Gangavaram Port is said to be India's deepest port with a depth of 21 mtr.

The port is managed by a special-purpose company and owned by the DVS Raju Group with 59% stake, Warburg Pincus with 30% and the Andhra Pradesh government with remaining 11%.

This would be Adani Ports' second port venture, after having acquired Krishnapatnam port in the state in October.

Though for now, sources said, Adani Ports would not get management control of Gangavaram Port but over time DVS Raju Group may seek an exit from this fully mechanised port.

On Wednesday, shares of Adani Ports ended 1.3% higher at 729.85 rupees on the National Stock Exchange.