Adani Infra Seeks CCI’s Nod To Acquire Majority Stake In PSP Projects

Adani Infra Seeks CCI’s Nod To Acquire Majority Stake In PSP Projects

The transaction has been notified under Section 6(2) read with Section 5(a) of the Competition Act

Adani Infra, a unit of the group's flagship firm Adani Enterprises has sought the approval of the Competition Commission of India (CCI) to acquire a majority stake in PSP Projects Ltd.

PSP Projects, having industrial, institutional, residential and luxury projects like the Surat Diamond Bourse, had an order book of Rs 6,546 crore as of September 2024.

In a statement filed with the CCI, Adani Infra said, "The proposed transaction involves the acquisition by the acquirer (Adani Infra India) of equity shares of PSP Projects from Prahaladbhai S Patel (seller).”

It added, "The public shareholders, by way of an open offer, such that, post-closing of the initial acquisition and open offer, the acquirer and the seller and other existing promoters would hold equal shareholding.”

The transaction has been notified under Section 6(2) read with Section 5(a) of the Competition Act, 2002, the company said.

Section 6(2) pertains to any person or enterprise to notify the CCI before entering a combination. Section 5(a) defines a combination as the acquisition of one or more enterprises, or the merger or amalgamation of enterprises, that exceeds a certain threshold.

In its submission to the CCI, billionaire Gautam Adani-led Adani Infra stated that the transaction would not impact the dynamics of any segment in India or adversely affect competition in any plausible relevant markets.

It added that accordingly, the definition of the relevant market may be left open. The Commission could consider markets based on the vertically linked activities of the parties, like real estate development, airport operations, and cement manufacturing and infrastructure services, for competition assessment.

In November, Adani Infra stated that it bought a 30.07 percent stake in construction firm PSP Projects for Rs.685.36 crore to consolidate its construction capabilities. The existing promoters hold a 60.14 percent interest in it. Meanwhile, Prabhladbhai S Patel holds 47.76 percent shares, of which he is selling 30.07 percent.

In recent months, Ahmedabad, Gujarat-based Adani Group has done a series of acquisitions to strengthen its footprint across multiple sectors.

After the stake sale, the existing promoters and Adani Infra will each hold a 30.07 percent stake. The open offer for an additional 26 percent stake that it will have to make to minority shareholders of PSP Projects will make the conglomerate the firm’s single-largest shareholder.