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 percent of the company’s paid-up share capital, amounting to ₹685 crore at ₹575 per share.
Pursuant to the execution of the SPA, the acquirer will be required to make an open offer in accordance with SEBI (SAST) regulations. Following the completion of the open offer, both companies are expected to hold equal equity stakes in PSP Projects Ltd. According to management, this strategic deal is expected to create operational synergies by leveraging cutting-edge technologies and expanding the scope of operations to include construction projects, data centers, real estate and airport-related infrastructure.
As of September, the company’s order book stood at ₹6,546 crore, with order inflows of ₹1,445 crore in H1FY25. This healthy and robust order book provides insight into turnover for the next two years.
Management has forecast an EBITDA margin of over 10 percent, supported by improved execution of project-related work and greater traction in the precast business segment. With the signing of the agreement with Adani, management expects to leverage advanced technologies and benefit from project-related synergies. These factors are expected to significantly improve the company’s overall execution capabilities in the coming years.
