Adani Infra seeks CCI nod for majority stake in PSP Projects
New Delhi: Adani Infra, led by billionaire Gautam Adani, has sought approval from the Competition Commission of India (CCI) to acquire a majority stake in PSP Projects Ltd, PTI reported.
PSP Projects, known for handling industrial, institutional, residential, and luxury projects like the Surat Diamond Bourse, had an order book valued at Rs 6,546 crore as of September 2024.
Under the transaction, Adani Infra will acquire equity shares of PSP Projects from Prahaladbhai S Patel, the current promoter, and through an open offer to public shareholders, stated the report.
According to the report, aA notice submitted to the CCI on Monday stated, "Post-closing of the initial acquisition and open offer, the acquirer, the seller, and other existing promoters would hold equal shareholding."
The proposal, notified under Section 6(2) read with Section 5(a) of the Competition Act, 2002, was submitted for assessment.
Section 6(2) mandates notifying the CCI before entering into a combination, while Section 5(a) outlines the thresholds for combinations such as acquisitions or mergers.
In its submission, Adani Infra asserted that the transaction would not disrupt market dynamics or negatively impact competition in any relevant market segment.
The submission suggested leaving the definition of relevant markets open, though competition could be assessed in areas like real estate development, airport operations, cement manufacturing, and infrastructure services.
In November 2024, Adani Infra announced plans to acquire a 30.07% stake in PSP Projects for Rs 685.36 crore to bolster its construction capabilities.
At present, PSP’s promoters collectively hold a 60.14% stake, with Prahaladbhai S Patel owning 47.76%, of which 30.07% is set to be sold to Adani Infra, according to the PTI report.
Following the stake sale, both Adani Infra and the existing promoters will each hold a 30.07% stake in the company, it added
Adani Infra will also launch an open offer for an additional 26% stake from minority shareholders, which would make it the largest shareholder in PSP Projects.
Adani Group, based in Ahmedabad, has pursued a series of acquisitions in recent months to strengthen its presence across various sectors.
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