Adani bought 49.38% stake in IOCL for Rs 1,050 crore, now number-1 in terms of liquid storage
Another big deal of Adani: bought a 49.38% stake in IOCL for Rs 1,050 crore, now number-1 in terms of liquid storage
Asia's richest man Gautam Adani has bought a stake in Indian Oiltanking Limited (IOTL). Adani Ports and Special Economic Zone Limited (APSEZ) on Wednesday (Nov 9) bought a 49.38% stake in IOTL for Rs 1,050 crore.
This also includes the acquisition of an additional 10% equity stake in IOT Utkal Energy Services Limited. Utkal Energy Services is a 71.57% subsidiary of IOTL. The company has given this information in the exchange filing.
Karan Adani, CEO and Whole Time Director, of Adani Ports, said that with this acquisition the oil storage capacity of APSEZ has increased by 200% to 3.6Mn KL. With this, it has become the largest third-party liquid storage company in India.
Established in 1996, IOTL is a joint venture between Indian Oil Corporation Limited and Oiltanking India. Over the past 26 years, IOTL has built a network of six terminals in five states. Whose total capacity is 2.4 Mn KL for the storage of crude and finished petroleum products?
IOTL's facilities include Navghar Terminal in Maharashtra, Raipur Terminal in Chhattisgarh and Goa Terminal. The boot terminal with Indian Oil Corporation Limited (IOCL) is at Paradip (Odisha) and O&M contracts with IOCL are at JNPT (Maharashtra) and Dumad (Gujarat). The company also has a 15 TPD capacity biogas plant at Namakkal (Tamil Nadu).
IOTL is on a growth spurt in view of the increasing demand for oil products in the country. The company has recently signed a 25-year boot contract with Numaligarh Refinery Limited for the construction, operation and maintenance of 0.6 Mn KL crude storage tanks at Paradip Port. Apart from this, the company is also negotiating and bidding on a number of different projects, both at existing facilities and at new locations.
Most of IOTL's tank capacity is contracted by reputed PSUs and oil companies. With around 80% of IOTL's capacity under 'take-and-pay' contracts, the company has a good outlook on its future cash flows. IOTL's revenue in FY22 was Rs 526 crore and EBITDA was Rs 357 crore.
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