Protests break out in APSEZ’s recently acquired Karaikal Port

The newly acquired Adani port, Karaikal in Pondicherry was rocked by protests on Thursday.

Soughting after to barge the port, over 200 Congressmen through protests demanded the industrial group should not be allowed to handle coal through the port. However, the police prevented the protesters from entering the port.

As reported last week, Adani Ports and Special Economic Zone Ltd (APSEZ) completed the acquisition of Karaikal Port Pvt Ltd (KPPL) pursuant to National Company Law Tribunal (NCLT) approval.

APSEZ was declared a successful resolution applicant under the corporate insolvency resolution process of KPPL.

Located 300km south of Chennai, the port is strategically located between the Chennai and Tuticorin ports.

APSEZ-the largest private player in ports, accounting for nearly one-fourth of the country’s total annual cargo movement emerged as the successful resolution applicant in proceedings under the Insolvency and Bankruptcy Code (IBC) 2016, against the only other applicant, Vedanta.

The Kattupalli port, an auxiliary but infrastructurally critical port North of Chennai was also acquired by APSEZ

APSEZ, under the resolution plan, has committed to make a payment of approximately Rs 1,583.07 crore towards the discharge of all the claims of the creditors. An upfront payment of Rs 1,485 crore will be made by APSEZ

Karaikal Port-an all-weather deep-water port in Puducherry has five operational berths, three railway sidings, total land area of over 600 hectares and a built-in cargo handling capacity of 21.5 million tonnes (mt).

“Acquisition consideration of Rs 1,485 crore implies an EV/EBITDA multiple of 8x on the FY23 estimated numbers,” APSEZ said in a statement.

According to the statement, the port is in proximity to the containerized cargo-originating industrial centres of Tamil Nadu, and the upcoming 9mt CPCL refinery.

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