InvestorQ : Is it true that Warburg Pincus is picking up a stake in Adani Ports SEZ?
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Is it true that Warburg Pincus is picking up a stake in Adani Ports SEZ?

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Archita Jajjoo answered.
1 month ago
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Well, that is absolutely correct. In fact, global private equity firm and one of the world’s most respected early-stage investors, Warburg Pincus, will invest Rs.800 crore in Adani Ports Ltd. This investment will be routed through its affiliate company, Windy Lakeside Investment and the deal assigns an enterprise valuation of approximately Rs.162,000 crore to Adani Ports SEZ, India’s largest private sector port operator.

This investment in clearly planned ahead of a massive pick up in trade volumes in the Indian ports as a follow up to the pandemic. This investment of Rs.800 crore will be in exchange for a 0.49% stake in Adani Ports. It may be recollected that almost the entire Adani group stocks have been among the top performers in terms of market cap growth over the last 1 year. This applies to Adani Enterprises, Adani Green Energy and also Adani Ports SEZ.

As part and parcel of this deal, a total of 10 million shares will be allotted to Windy Lakeside, the unit of Warburg Pincus, at a price of Rs.800 per share. This price represents a premium of 6.7% to its last closing price. An extraordinary general meeting or EGM of shareholders is being specially convened on 6 April to seek approval for the proposed deal. This is likely to enhance the global interest in the group stocks.

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