Adani Ports & SEZ is looking to acquire Karaikal port in Puducherry at a valuation of ₹1,500-2,000 crores, however, a number of sources mentioned that the deal is “not simple” to consummate given the possession construction and the debt. The port working firm has a debt of about ₹2,000 crores of which 97 percent is with Edelweiss ARC after it took over the loans from a consortium of state-run banks.
Marg Ltd, the promoter of the port, holds a 45 percent stake in Karaikal Port Personal Ltd (KPPL). Four non-public fairness funds – Ascent Capital Advisors India Pvt Ltd, Jacob Ballas Capital India Pvt Ltd, Affirma Capital India, and GIP India – collectively maintain 44 percent stake within the Karaikal Port Pvt Ltd, and the steadiness 11 percent fairness is held by Edelweiss Asset Reconstruction Co Ltd. The structure appears to be insurmountable; it is not easy for APSEZ to acquire Karaikal port, said a port consultant.
Adani Ports & SEZ has two choices to work out a deal. First, it may possibly straight cope with Edelweiss ARC for the debt portion and repay the fairness holders. However, the price of acquisition will probably be very excessive below this selection, the advisor mentioned. Given the “weak financials”, Karaikal’s valuation will probably be about ₹1,500 crore, which is lower than the debt of about ₹2,000 crores.
The second possibility is for the debt holders to take the port firm to a chapter court docket which is able to permit the customer to jot down off the fairness and pay solely the monetary collectors. However, it is a time-consuming course, the advisor mentioned.
“We solely have debt on behalf of banks. Fairness with us is a part of restructuring of debt,” R Ok Bansal, Managing Director, Edelweiss ARC mentioned with a suggestion to pose the question on exit to fairness traders.
Marg Karaikal port expects to double cargo dealing with, revenues this fiscal.