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HomeInfrastructureAdani Infra Seeks CCI Approval for Majority Stake Acquisition in PSP Projects

Adani Infra Seeks CCI Approval for Majority Stake Acquisition in PSP Projects

Adani Infra Seeks CCI Approval for Majority Stake Acquisition in PSP Projects

Adani Infra, a subsidiary of the Adani Group’s flagship company Adani Enterprises, is seeking approval from the Competition Commission of India (CCI) to acquire a majority stake in PSP Projects Ltd, a prominent construction company with an extensive portfolio in industrial, residential, and luxury projects.

As of September 2024, PSP Projects held an impressive order book of Rs 6,546 crore, including landmark developments like the Surat Diamond Bourse, which has contributed to the firm’s growing influence in India’s infrastructure sector. The transaction would see Adani Infra acquire a significant equity stake from the company’s promoter, Prahaladbhai S Patel, alongside an open offer for additional shares from public shareholders. According to a filing with the CCI on January 23, 2025, Adani Infra plans to purchase 30.07% of PSP Projects’ shares for Rs 685.36 crore. This will make Adani Infra the single largest shareholder in PSP Projects after the stake acquisition and open offer, which would also involve the existing promoters of PSP holding an equal shareholding with Adani Infra. The transaction is subject to approval under the Competition Act, 2002, specifically Sections 6(2) and 5(a), which govern mergers, acquisitions, and combinations that could potentially impact market competition. As part of the submission to the CCI, Adani Infra indicated that it expects the acquisition to have no adverse impact on competition within India’s relevant markets, which may include areas such as real estate development, infrastructure services, airport operations, and cement manufacturing.

The acquisition would significantly bolster Adani Infra’s presence in the construction sector, allowing the Adani Group to consolidate its capabilities in infrastructure development. The move comes amid a broader strategy by the Adani Group to expand its footprint across various sectors, from energy to transport, and to strengthen its role in India’s rapidly growing infrastructure and real estate markets. PSP Projects’ diverse portfolio and strong market positioning make it an attractive acquisition target for Adani Infra, which aims to enhance its construction and project development operations. Following the stake purchase, the existing promoters, along with Adani Infra, will each hold a 30.07% stake, while the open offer will allow minority shareholders to sell additional shares, ensuring that the conglomerate secures a controlling stake.

This acquisition highlights the ongoing trend of large corporate groups in India consolidating their holdings in key infrastructure and real estate companies, as they look to take advantage of the country’s urbanisation and infrastructure boom. With significant investments in projects like airports, transport corridors, and luxury residential developments, both Adani Infra and PSP Projects are well-positioned to play an instrumental role in shaping India’s future growth. For the wider business community, this move also reflects the increasing competitiveness and consolidation in the Indian infrastructure sector. Adani Infra’s push for greater influence in PSP Projects not only expands its project pipeline but also allows it to leverage the expertise and reputation of a well-established player in the construction space. Adani Infra’s acquisition of a majority stake in PSP Projects would mark a significant milestone for both companies, enhancing their construction capabilities and market standing. With the CCI’s approval, this transaction could reshape the competitive landscape of India’s infrastructure industry and signal further consolidation within the sector.

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