Shares of Adani Ports and Special Economic Zone were up on Tuesday after the firm took over a major port in eastern India.

What Happened: Adani Ports said its had acquired a 95% stake in Odisha’s Gopalpur Port for an equity value of ₹1,349 crore. This move aims to bolster its presence on the east coast, enhancing its status as India’s largest private port operator.

The acquisition entails Adani Ports purchasing a 56% stake in the port from the real estate conglomerate Shapoorji Pallonji Group and a 39% stake from Orissa Stevedores.

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Karan Adani, the managing director at Adani Ports, highlighted that Gopalpur Port will expand the Adani Group’s port network across India, balance cargo volumes between the east and west coasts, and reinforce its integrated logistics strategy.

Gopalpur Port handles various dry bulk cargoes, including iron ore, coal, limestone, ilmenite and alumina.

The Shapoorji Pallonji Group acquired Gopalpur Port in 2017 and successfully commenced operations after establishing robust infrastructure and industry relationships. Presently, the port can handle up to 20 million tonnes of freight annually, operating at high efficiency levels.

Furthermore, Gopalpur Port, in collaboration with Petronet LNG, plans to construct a greenfield LNG regasification station, ensuring steady and long-term cash flows.

Price Action: Adani Ports’ share price was up 1.4% at ₹1,299.50 in morning trade on Tuesday.

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