Adani Infra to buy 30% stake in construction firm PSP Projects in Rs 6.85 billion deal
Adani Infra, a subsidiary of Gautam Adani's flagship Adani Enterprises, will buy a 30.07% stake in construction firm PSP Projects for Rs 6.85 billion ($81.2 million), Reuters reported, citing a company announcement by the latter.
PSP Projects made the announcement on Tuesday.
The shares will be purchased from Prahladbhai S Patel, PSP Projects' chairman and largest shareholder.
This acquisition is in line with the Adani Group's current expansion efforts across various sectors.
Recently, the conglomerate also made a $10 billion investment in U.S. energy security and infrastructure.
PSP Projects, with involvement in industrial, institutional, residential, and luxury developments such as the Surat Diamond Bourse, reported an order book of Rs 65.46 billion as of September 30.
The transaction values PSP Projects at Rs 575 per share, reflecting a 15% discount to its Tuesday closing price.
While PSP Projects' shares ended 4.4% higher, they had surged as much as 14% earlier in the day following a CNBC-TV18 report on the deal.
As part of the transaction, Adani Infra will launch an "open offer" to acquire an additional stake in PSP Projects, as required by Indian regulations for share purchases exceeding 25%.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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