Adani will pay Rs 575 apiece for PSP Projects, a 14.43% discount to its last closing price of 672 rupees.
Billionaire Gautam Adani agreed to buy a stake in PSP Projects Ltd. as his ports-to-power conglomerate seeks to enhance its engineering and construction capabilities to execute infrastructure projects.
Adani Infra (India) Ltd., a unit of the Adani Group, will buy 30.07% of the firm from the founders for 6.85 billion rupees ($81.1 million), according to an exchange filing Tuesday.
PSP Projects offers a diversified range of construction and allied services across industrial, institutional, government and residential projects in India, according to its website.
This is the second acquisition by Adani Group in less than a month as the conglomerate bolsters its capabilities to build complex infrastructure projects in India. Last month, the group had agreed to buy construction company ITD Cementation India Ltd. The group has been buying cement makers to support Indian Prime Minister Narendra Modi's goal of modernizing the country's creaky infrastructure.
The Adani unit will pay 575 rupees apiece for PSP Projects, a 14.43% discount to its last closing price of 672 rupees.
It will also make an open offer for an additional 26% stake in the firm at 642.06 rupees apiece, amounting to an additional investment of 6.6 billion rupees, according to a separate filing.
After the completion of the deal and the open offer, Adani Infra will take joint control over PSP Projects with the existing founders, the filing said. PSP's board will be re-constituted to include directors nominated by the Adani unit. The existing founder group and Adani Infra cannot sell any shares in PSP for five years from the date of completion of the deal, it said.
CNBC-TV18 first reported the transaction on Tuesday.
The Adani Group is back in expansionist and acquisition mode after recovering from an attack by short-seller Hindenburg Research in early 2023. Hindenburg's accusations of fraud and "brazen" stock price manipulation wiped out more than $150 billion in the empire's market value at one point. The group has repeatedly denied the charges.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)