Target: ₹685
CMP: ₹614.35
On November 19, PSP Projects entered into a Share Purchase Agreement (SPA) with Adani Infra India for the sale of up to 30.07 per cent of the company’s paid-up share capital, amounting to ₹685 crore for ₹575 per share.
Under the execution of the SPA, the acquirer will be required to make an open offer in compliance with SEBI (SAST) regulations. Post-consummation of the open offer, both companies are expected to hold equal equity stakes in PSP Projects Ltd. According to management, this strategic deal is anticipated to create operational synergies by leveraging advanced technologies and expanding the scope of work to include building projects, data centres, realty, and airport-related infrastructure.
As of September, the company’s order book stood at ₹6,546 crore, with an order inflow of ₹1,445 crore in H1FY25. This healthy and robust order book provide revenue visibility for the next two years.
The management has projected an EBITDA margin of over 10 per cent supported by improved execution in project-related work and increased traction in the pre-cast business segment. With the signing of the deal with Adani, management anticipates leveraging advanced technologies and benefiting from project-related synergies. These factors are expected to significantly enhance the company’s overall execution capabilities in the coming years.