The Adani Group will acquire a 30% stake in Gujarat-based construction company PSP Projects from its promoters for Rs 685 crore.
Adani Infra, part of the Gautam Adani-led conglomerate, will purchase the stake from Prahladbhai S Patel, who heads PSP Projects and is its shareholder.
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The deal values PSP Projects at Rs 575 per share, a 15% discount to its closing price on Tuesday.
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Adani Infra will have to launch an open offer for purchasing a further stake in PSP Projects, as per norms. The promoter group holds a 60.14% stake in the company.
The acquisition is expected to help Adani Group expand its footprint in the infrastructure and real estate space. It recently announced a $10-billion in energy security and infrastructure.
Adani operates airports, ports, roads and more, besides running a real estate company, Adani Realty, which is redeveloping Dharavi in Mumbai.
Following the announcement, PSP’s share rose over 14% in intraday trade and ended the day at Rs 671.75 , about 4.71% higher. The company has a market capitalisation of Rs 2,663 crore as on Tuesday.
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PSP Projects offers construction and allied services for industrial, institutional, government, government residential, and residential projects. The company provides services from planning and design to construction and post-construction activities.
The company built projects like the Surat Diamond Bourse and has an order book of Rs 6,546 crore as of September 30.
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