Gopalpur Port's credit rating upgraded by Care Edge Ratings following acquisition by Adani Ports

New Delhi: The credit rating of Gopalpur Ports Limited (GPL) has been upgraded to CARE AA; Stable by Care Edge Ratings following its acquisition by Adani Ports and Special Economic Zone Limited (APSEZ).
The company has also been removed from the 'credit watch with positive implications' status, reflecting the positive impact of the change in ownership.
The upgrade comes after Adani Ports completed the acquisition of a 95 per cent stake in GPL on October 11, 2024. The acquisition involved buying a 56 per cent stake from Shapoorji Pallonji Port Maintenance Private Limited and a 39 per cent stake from Orissa Stevedores Limited.
The rating agency said "Rating of Gopalpur Ports Limited (GPL) is revised to CARE AA; Stable and simultaneously removed from 'credit watch with positive implications' following change in ownership from Shapoorji Pallonji (SP) group to Adani Ports and Special Economic Zone Limited".
The rating agency attributed the revision to the prepayment of 64 per cent of GPL's external debt, amounting to approximately Rs 800 crore, which was supported by a fund infusion from APSEZ. This move has significantly improved GPL's credit profile, with no major debt-raising plans expected in the near term.
The rating reflects APSEZ's strong parentage, as it is India's largest port developer and operator, managing 10 ports and three terminals and handling 27 per cent of the country's seaborne cargo. APSEZ has a proven track record of turning around port assets post-acquisition, as seen with Dhamra Port.
The company's large fleet of rakes and logistical equipment is expected to boost GPL's operational efficiency and address existing evacuation challenges.
The agency noted that GPL benefits from a strategic port location, tariff flexibility, a favourable industry outlook, and a strong liquidity profile, including the creation of a debt service reserve account for one quarter of debt servicing.
It said "The rating continues to be underpinned by favourable port location, tariff flexibility, favourable industry outlook of the ports and strong liquidity profile with creation of a debt service reserve account (DSRA) for one quarter of the debt servicing".
Gopalpur Port is along the Bay of Bengal between two of the busiest ports on India's east coast, south of Paradip Port (distance of 270 km) and north of Vizag Port (distance of 285 km). The port is connected to the Golden Quadrilateral (NH-5) through NH516, which is 6 km from the port. Gopalpur Port also has two railway sidings, which are connected to the Howrah-Chennai Trunk Line, accessible to both, east and south of India. GPL has been handling capsize and mini-capsize vessels at its port.
APSEZ's demonstrated expertise in enhancing the performance of acquired assets is expected to support GPL's growth in the medium term, reinforcing its position as a key player in India's port infrastructure sector.