Adani Group Expands Infrastructure Portfolio with PSP Projects Stake Acquisition
In a strategic move to strengthen its engineering and construction capabilities, billionaire Gautam Adani’s conglomerate has announced plans to acquire a significant stake in PSP Projects Ltd.. Through its subsidiary, Adani Infra (India) Ltd., the group will purchase a 30.07% stake in PSP Projects from the company’s founders for ₹6.85 billion ($81.1 million), according to a stock exchange filing on Tuesday.
This acquisition is part of the Adani Group’s broader strategy to bolster its infrastructure development arm, aligning with India’s goal to modernize its aging infrastructure.
Details of the PSP Projects Deal
PSP Projects, a Gujarat-based construction firm, provides diversified services across industrial, institutional, government, and residential sectors. The Adani unit will pay ₹575 per share for the stake, representing a 14.43% discount to the last closing price of ₹672.
In addition to acquiring the stake from PSP’s founders, Adani Infra will also make an open offer for an additional 26% stake at ₹642.06 per share. This offer could result in an additional investment of ₹6.6 billion, further consolidating the Adani Group’s control over the firm.
Post-acquisition, joint control of PSP Projects will be established between Adani Infra and the company’s existing founders. PSP’s board of directors will be restructured to include Adani-nominated representatives. Additionally, both the Adani unit and PSP’s founder group will be restricted from selling their shares for the next five years, ensuring stability in the company’s management structure.
Aligning with India’s Infrastructure Push
This marks the Adani Group’s second acquisition in less than a month, following its agreement to buy ITD Cementation India Ltd. The series of acquisitions underscores the group’s commitment to Prime Minister Narendra Modi’s infrastructure development agenda, which aims to transform India’s outdated systems.
Adani’s recent focus on construction and cement acquisitions demonstrates a deliberate effort to build capabilities for executing large-scale, complex infrastructure projects.
Adani Group’s Resurgence Post-Hindenburg Report
The acquisition comes as the Adani Group continues to recover from the fallout of the Hindenburg Research report earlier this year. The short-seller’s allegations of fraud and stock price manipulation had erased more than $150 billion in market value from the conglomerate at its peak.
Despite the setback, the group has rebounded, denying the allegations and pursuing an aggressive expansion strategy. This latest deal signals Adani’s renewed focus on growth and diversification.
The acquisition of PSP Projects will enhance the Adani Group’s ability to undertake advanced infrastructure projects, solidifying its position as a key player in India’s infrastructure modernization efforts. With growing demand for efficient engineering and construction services, this strategic move is expected to further strengthen the conglomerate’s leadership in the sector.
See Also:
India Tops the Chart for International Students in the US
Rice University Opens India Center to Strengthen Global Research Collaborations
Johns Hopkins University Campus in India Being Discussed
UPPSC Exam Protest Intensifies
——————————————————————————-
It would mean the world to us if you follow us on Twitter, Instagram and Facebook. At Newscazt, we strive to bring you the latest news and stories from India, World, Business, Sports, Entertainment and more. Our team of experienced journalists and writers are committed to delivering accurate and unbiased news and analysis.
