PSP Projects Shares Tumbled Over 7% After Sale of Stake by Promoters

On November 19, 2024, PSP Projects Limited announced that Adani Infra (India) Limited, the Project Management Consultancy (PMC) arm of the Adani Group signed definitive agreements to acquire up to 30.07% stake in the company from its current promoter, Mr. Prahladbhai S. Patel. As a result, Mr. Patel and his family’s ownership stake in the company will be reduced, which currently stands at 60.14%.

Partnership Vision

The strategic partnership between Adani Infra and PSP Projects aims to position the latter as one of India’s leading EPC companies. With an eye on India’s rapidly growing infrastructure sector, this collaboration is expected to drive significant growth. The Adani Group plans to invest USD 100 billion in capital expenditure over the next decade to support infrastructure development across India.

Leadership Continuity and Board Representation

As part of the agreement, PSP Projects will continue to be led by its visionary Chairman, Managing Director, and CEO, Mr. Prahladbhai S. Patel. Adani Infra will gain equal rights and representation on the PSP Projects board. This will allow for strategic guidance while maintaining the leadership continuity that has driven the company’s success.

Regulatory Approvals and Open Offer

The acquisition is subject to customary approvals and regulatory clearances, including the completion of an open offer in compliance with the SEBI Takeover Regulations. In this transaction, Cyril Amarchand Mangaldas acted as the legal advisor, while ICICI Securities will serve as the merchant banker for the open offer.

About PSP Projects

PSP Projects Limited, a prominent player in the Indian Engineering, Procurement, and Construction (EPC) sector, is listed on both the NSE and BSE. The company boasts an impressive order book valued at ₹6,546 Crore, with notable executed projects including the Surat Diamond Bourse, Kashi Vishwanath Dham, and Palladium Mall in Ahmedabad, among others.

About Adani Infra

Adani Infra (India) Limited is a key player within the Adani Group’s vast infrastructure portfolio, which is entirely owned by the Adani Family. The company’s involvement spans various sectors including ports, roads, airports, water, data centers, power projects, renewable energy, green hydrogen, cement, and transmission and distribution.

On November 21, 2024, PSP Projects shares opened at ₹648.90 and touched the day low of ₹617.45 at 09:30 AM, reflecting a fall of 7.55% from the previous close

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.