 "Adani Infra to acquire key stake in PSP Projects, CCI approval pending")
Billionaire Gautam Adani’s Adani Infra, a unit of Adani Enterprises, has approached the Competition Commission of India (CCI) to seek approval for acquiring a significant stake in PSP Projects Ltd, a leading name in industrial, institutional, residential, and luxury construction.
PSP Projects boasts an impressive portfolio, including the Surat Diamond Bourse, and had an order book worth Rs 6,546 crore as of September 2024. The acquisition is poised to strengthen Adani Group’s position in India’s construction sector.
Deal at a glance
According to a filing with the CCI, the transaction involves Adani Infra purchasing equity shares from Prahaladbhai S Patel, the current promoter of PSP Projects.
“The proposed transaction involves the acquisition by the acquirer [Adani Infra India] of equity shares of the target [PSP Projects] from Prahaladbhai S Patel [seller] and public shareholders by way of an open offer. Post-closing, the acquirer, seller, and other existing promoters would hold equal shareholding,” the filing stated.
The deal has been notified under Section 6(2) and Section 5(a) of the Competition Act, 2002, which require companies to seek CCI approval for acquisitions exceeding certain thresholds. Adani Infra assured that the transaction would not disrupt market dynamics or competition in any sector, including real estate, airport operations, cement manufacturing, and infrastructure services.
Adani’s construction capabilities
In November 2024, Adani Infra announced plans to acquire a 30.07 per cent stake in PSP Projects for Rs 685.36 crore. The Ahmedabad-based PSP Projects is currently 60.14 per cent owned by existing promoters, with Prahaladbhai S Patel holding 47.76 per cent of the shares. Patel is selling a 30.07 per cent stake as part of the deal.
Once the transaction is complete, Adani Infra and the existing promoters will each hold a 30.07 per cent stake in PSP Projects. Additionally, an open offer for another 26 per cent stake will be made to PSP’s minority shareholders, potentially making Adani Infra the largest single shareholder in the company.
[With agency inputs]