The Adani Group will acquire a 30% stake in Gujarat-based construction company PSP Projects from its promoters for Rs 685 crore.
Adani Infra, part of the Gautam Adani-led conglomerate, will purchase the stake from Prahladbhai S Patel, who heads PSP Projects and is its shareholder.
The deal values PSP Projects at Rs 575 per share, a 15% discount to its closing price on Tuesday.
Adani Infra will have to launch an open offer for purchasing a further stake in PSP Projects, as per norms. The promoter group holds a 60.14% stake in the company.
The acquisition is expected to help Adani Group expand its footprint in the infrastructure and real estate space. It recently announced a $10-billion in energy security and infrastructure.
Adani operates airports, ports, roads and more, besides running a real estate company, Adani Realty, which is redeveloping Dharavi in Mumbai.
Following the announcement, PSP’s share rose over 14% in intraday trade and ended the day at Rs 671.75 , about 4.71% higher. The company has a market capitalisation of Rs 2,663 crore as on Tuesday.
PSP Projects offers construction and allied services for industrial, institutional, government, government residential, and residential projects. The company provides services from planning and design to construction and post-construction activities.
The company built projects like the Surat Diamond Bourse and has an order book of Rs 6,546 crore as of September 30.