Assignment Highlights

• SBICAPS was the Transaction Advisor to CVR Group (Navayuga Group) for majority stake sale in Krishnapatnam Port Company Limited (KPCL) to Adani Port & Special Economic Zone (APSEZ) Ltd.
• Krishnapatnam port is an all-weather deep water port located on the east coast of India in Andhra Pradesh. It is the second largest private sector port in India handling diverse cargo such as containers, coal, break bulk and liquid cargo.
• APSEZ, the largest commercial ports operator in India, has acquired controlling stake in KPCL for an Enterprise Value of ~Rs. 12,000 cr.
• The transaction enabled the Buyer grow inorganically and expand its market footprint, whereas it enabled the Navayuga Group to strengthen its financial position. 

SBICAPS Value Add

• SBICAPS acted as the liaison between the Seller, Buyer and supporting Consultants involved in due diligence and assisted the Seller team in various data mining and analysis activities.
• SBICAPS was associated with the Seller team throughout the transaction, including finalization of term sheet, review and assistance to Seller to finalize the share purchase, escrow agreements and related transaction documents.
• Being an operational port, various CPs were identified to be addressed prior to closure which inter alia included various consents and various business items.
• The transaction involved multiple stakeholders including Lenders, PE Investors, Seller, Buyer, Government entities, etc. which required multiple escrow arrangements to enable parallel negotiations.
• Execution of SPA and signing of Definitive Agreement for transaction of this size was a challenging task given the size of transaction, operational & contractual complexities amongst the various stake holders (including. Govt., Users, Lenders, Contractors etc) of the port.