Stock operating in the domain of Realty engaged in offering a diversified range of construction and allied services jumped upto 15 percent in the day’s trade following speculations of Adani Group to acquire upto 86 percent stake in it.
Price Action
With a market capitalization of Rs. 2,842 Crores, the shares of PSP Projects Limited were trading at Rs. 717 per equity share, up 12 percent from its previous day’s close price of Rs. 641.55.
What Happened
As per sources, Adani Group is in the advanced stages of negotiations to buy upto 60.14 percent stake in PSP Projects Limited, which may include a 60.14 percent stake from its promoters and 26 percent through an open offer from the public shareholders.
Recent Acquisition
Renew Exim DMCC, a wholly owned offshore entity of the Adani promoter family, recently entered into an agreement with ITD Cementation’s promoter Italian-Thai Development Public Co. to buy a 46.64 percent stake in the company and it has given an open offer to the other shareholders of the company to acquire additional 26 percent stake.
The ongoing acquisition spree aligns with Adani Group’s ambitious acquisition strategy with a focus on expanding its presence in sectors such as cement, airports, defence, ports, power, consumer goods, and many more.
About the Company
PSP Projects Limited operates in the domain of Realty offering a diversified range of construction and allied services across industrial, institutional, government, government residential, and residential projects in India.
Some of the prominent projects completed by PSP Projects Limited are the development of Kashi Vishwanath Dham, Surat Diamond Bourse, Zydus Hospital, and Smart Buildings in Gift City.
As of Q2FY25, PSP Projects Limited has a strong order book of Rs. 6,546 Crores. It consists of 54 percent government projects, 27 percent institutional projects,11 percent industrial projects, 7 percent residential projects, and 2 percent government residential projects.
Financials & Ratios
Its revenue from operations declined by 5.44 percent from Rs. 620 Crores in Q2FY24 to Rs. 586 Crores in Q2FY25, accompanied by profits of Rs. 39 Crores to Rs. 10 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 12.33 percent and a return on capital employed (ROCE) of 7.64 percent. In terms of leverage, it has reported a debt-to-equity ratio of 0.23.
Written by: Bharath K.S
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