Adani Infra (India) Ltd, a unit of the Adani Group, has agreed to buy a 30.07% stake in construction company PSP Projects in an all-cash deal for ₹685.4 crore.
The transaction is expected to help Gautam Adani-led Adani Infra strengthen the group’s engineering and construction capabilities to execute infrastructure and real estate projects. In a regulatory filing, PSP Projects said Adani Infra will buy up to 11.9 million equity shares of the company from one of its promoters, Prahalad Bhai Patel.
PSP Projects has implemented industrial, residential and luxury projects like the Surat Diamond Bourse. As of September 30, the company had an order book of ₹6,546 crore.The acquisition comes weeks after Adani Group’s Dubai-based firm Renew Exim DMCC agreed to take a 46.64% stake in engineering and construction firm ITD Cementation India from its promoters for ₹3,204 crore.
Shares of PSP Projects closed 4.71% higher at ₹671.75 on the BSE. The deal valued PSP Projects at ₹575 per share, a 15% discount from its closing price on Tuesday. The company currently has a market capitalisation of ₹2,663 crore.
Adani Infra also made an open offer following a share purchase agreement (SPA) with PSP Projects.
“Pursuant to and in compliance with…Adani Infra (India) Limited is making an open offer for the acquisition of up to 1,03,06,866 equity shares of the target company,” PSP Projects said.
Post completion of the deal, Adani Infra will have control of PSP Projects jointly with Prahaladbhai Patel, Pooja Patel, Sagar Patel, Shilpaben Patel, PSP Family Trust, PPP Family Trust and SSP Family Trust (the existing promoter group) and it will be classified as one of the promoters of the company. The board of PSP Projects will also be reconstituted to include directors nominated by Adani Infra. The existing promoter group of PSP Projects holds 60.14% of the paid-up equity share capital.
This is the 11th acquisition for the Adani Group so far this financial year, which includes Orient Cement, Penna Cements, Essar Transco, and ITD Cementation, which are at various stages of completion.
