Adani Infra Acquires Stake in PSP Projects
Adani Infra, a subsidiary of Adani Enterprises, has announced the acquisition of a 30.07% stake in construction company PSP Projects for Rs 6.85 billion (approximately $81.2 million). The shares will be purchased from PSP Projects' chairman and largest shareholder, Prahladbhai S Patel.
This move marks another step in the Adani Group's expansion across various sectors. The group, led by billionaire Gautam Adani, already operates in areas like ports and power. Recently, they announced a $10 billion investment in energy and infrastructure projects in the United States.
PSP Projects is known for its work on industrial, institutional, residential, and luxury developments, including the Surat Diamond Bourse. As of September 30, the company reported an order book worth Rs 65.46 billion.
The deal values PSP Projects at Rs 575 per share, which is 15% lower than its closing price on the day of the announcement. Following the news, PSP Projects' shares initially jumped 14% before settling at a 4.4% increase.
As per Indian regulations, Adani Infra will also initiate an "open offer" to acquire an additional stake in PSP Projects. This is required for transactions exceeding a 25% shareholding.