Adani Ports and Special Economic Zone (APSEZ), one of the largest private multi-port operators has inked pact to acquire Kattupalli Port from L&T Shipbuilding (LTSB) a subsidiary of Larsen & Toubro.

The company, through its subsidiary Adani Kattupalli Port Private (AKPPL), entered into an in principle agreement for strategic acquisition of the Kattupalli Port in Tamil Nadu. However, this is subject to receiving the necessary approvals from the Government of Tamil Nadu and Central Government, and the port being demerged from LTSB.

Gautam Adani, chairman, Adani Group said, "The Kattupalli agreement is yet another step by us to continue to enable the development of the port infrastructure that is critical for our country. The Kattupalli port is a strategic complement to our Ennore Container terminal which is getting commissioned next year. Both these ports will substantially help reduce congestion in the region and will thereby help contribute to the rapid growth of the State of Tamil Nadu and the surrounding regions."

While awaiting the necessary approvals, APSEZ through its subsidiary AKPPL has entered into an arrangement to take over the operations of the Port. Currently L&T operates both the port and shipyard under a single entity, L&T Ship Building.

Kattupalli is a deep water all weather port with an international container terminal located 35 kms from Chennai, Tamil Nadu and well connected to the hinterland.

Shares of the company declined Rs 2.7, or 0.95%, to trade at Rs 282.20. The total volume of shares traded was 139,137 at the BSE (12.25 p.m., Monday).