Adani Infrastructure Seeks CCI Approval To Acquire Majority Stake In PSP Projects

Gautam Adani-led Adani Infrastructure has approached the Competition Commission of India for approval to acquire a majority stake in PSP Projects Ltd.

Adani Infra is a subsidiary of Adani Enterprises, the flagship company of the Adani Group.

PSP Projects, known for its industrial, institutional, residential, and luxury developments such as the Surat Diamond Bourse, had an order book worth Rs 6,546 crore as of September 2024.

"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," said a notice filed with the Competition Commission of India on Monday.

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

Section 6(2) of the Competition Act pertains to any person or enterprise notifying the CCI before entering into a combination, while 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 for the assessment of the proposed transaction, Adani Infra stated that the deal will not impact the market dynamics in any sector in India or cause any significant negative effect on competition in any relevant markets.

As such, the company suggested that the definition of the relevant market can remain flexible, with the CCI considering markets based on the vertically related activities of the parties, such as real estate development, airport operations, cement manufacturing, and infrastructure services for the competition assessment.

Last November, Gautam Adani's Adani Infra announced plans to acquire a 30.07% stake in construction firm PSP Projects for Rs 685.36 crore as part of its strategy to strengthen its construction capabilities.

Existing promoters hold a 60.14% interest in PSP Projects. Prabhladbhai S Patel holds 47.76% shares, of which he is selling 30.07%.

Ahemdabad-based Adani Group has in recent months 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% stake.

(With PTI Inputs)