Gautam Adani’s Adani Infra Acquires 30.07% Stake in PSP Projects for ₹685 Crore: Key Details Inside

Billionaire Gautam Adani has made another bold move in the infrastructure sector. His company, Adani Infra (India) Limited, has signed definitive agreements to acquire up to a 30.07% stake in construction firm PSP Projects for ₹685 crore.

Adani Infra is acquiring the stake from PSP Projects’ founder-promoter, Prahladbhai S. Patel. Currently, Prahladbhai S. Patel and his family own a 60.14% stake in the construction company, with Prahladbhai S. Patel individually holding around 48% of the company’s shares.

Management After the Deal

According to PSP Projects’ statement, the existing management of the company will continue after the deal, while the Adani Group will have equal representation on the board and joint control of the company. The transaction remains subject to customary and regulatory approvals, including the completion of an open offer.

PSP Projects: Adani’s Open Offer

As required by SEBI rules for acquisitions exceeding 25% in listed companies, the Adani deal also includes an open offer for PSP Projects at ₹642.06 per share – a 4% discount to ₹666.50, the closing price of the company’s shares on Tuesday, November 19.

PSP Projects: Company Profile

According to the PSP Projects statement sent to the exchanges, the company is “one of the leading EPC companies in India” with an order book of ₹6,546 crore. The company has executed projects such as the Surat Diamond Bourse, Kashi Vishwanath Dham, and Palladium Mall (Ahmedabad), among others.

After the acquisition by the Adani Group, PSP Projects expects to become one of the leading EPC companies in India, bolstered by accelerated growth in the country’s infrastructure development.

Gautam Adani’s Expansion Spree

The acquisition of PSP Projects aligns with Gautam Adani’s strategy to expand into sectors such as cement, airports, defence, ports, power, and consumer goods, with the group aiming to invest $100 billion in capital expenditure over the next decade. It is also a good fit for Adani Infra, which is the Project Management Consultancy (PMC) arm of the Adani Portfolio, owned 100% by the Adani family.