AdaniConneX Acquires 100% Stake in Madhuvanti Build Estate for INR 765.25 Crores
AdaniConneX Private Limited (ACX), a joint venture of Adani Enterprises Ltd, has acquired a 100% equity stake in Madhuvanti Build Estate Limited (MBEL). The acquisition was completed at a purchase consideration of INR 765.25 crores from the seller, Adani Infra (India) Limited.The objective of ACX in acquiring MBEL is to set up infrastructure facilities.
Key Details of the Acquisition
Madhuvanti Build Estate Limited is an entity incorporated in India and registered with the Registrar of Companies, Gujarat. It was established on November 11, 2019, with the object of carrying out infrastructure development activities. Although MBEL has yet to commence commercial activities, the company owns a sizable land parcel and has secured key licenses necessary for commencing infrastructure work.
The acquisition involved cash consideration against shares. ACX acquired the full 100% equity stake in MBEL. The purchase consideration amounted to INR 765.25 crores.
While MBEL's authorized share capital is INR 10,000 and its paid-up share capital is also INR 10,000, it has reported nil turnover as it is yet to commence commercial activities.
Transaction Scope
The acquisition falls under the infrastructure development sector. ACX noted that this transaction is not a related party transaction for Adani Enterprises, though the target entity is controlled by the promoter group of the Company. The transaction was conducted on an arms' length basis.
A summary of the material details of the acquisition is provided below:
| Particulars | Details |
|---|---|
| Acquired Entity | Madhuvanti Build Estate Limited (MBEL) |
| Industry | Infrastructure development activities |
| Purpose of Acquisition | To set up infrastructure facilities |
| Acquisition Status | Transaction is completed |
| Cost of Acquisition | INR 765.25 crores |
| Stake Acquired | 100% equity stake |
ADANIENT Stock Price Movement
Adani Enterprises Limited shares slipped by 0.6% to settle at ₹2908.80 as trading concluded today. The stock saw heavy activity, dipping down to a day low of ₹2895.1 amidst a volume of 1.20 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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