Introduction:
A major Indian conglomerate has agreed to acquire a 30.07% stake in a prominent construction firm for ₹685 crore. This strategic partnership aims to boost the firm’s growth and enhance its position as a leading EPC player in India’s expanding infrastructure sector.
Share price movement of PSP Projects Limited:
On November 19, 2024, PSP Projects Ltd. opened at ₹659.65, marking a 2.82% increase from its previous close of ₹641.55. The stock reached an intraday high of ₹734.75, up 14.51%, and an intraday low of ₹647.95.
By 16:00, it was trading at ₹671.75, reflecting a 4.71% increase. The market capitalization for the day stood at ₹2,662.94 crore.
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Adani Infra acquires PSP Projects stake:
Adani Infra (India) Limited, part of the Adani Group, has agreed to acquire a 30.07% stake in PSP Projects Ltd for ₹685 crore. The stake will be purchased from PSP’s existing promoter, Prahladbhai S Patel, who, along with his family, currently owns a 60.14% stake.
This strategic partnership aims to accelerate PSP Projects’ growth and position it as a leading EPC company in India. The collaboration comes amid India’s growing infrastructure development, with Adani Infra gaining equal rights and representation on PSP’s board following the transaction’s completion, subject to regulatory approvals.
Prahladbhai S Patel will continue to lead PSP Projects as Chairman, MD, and CEO, ensuring continuity in leadership. The transaction is also subject to customary approvals, including an open offer in compliance with SEBI Takeover Regulations.
Recent news on PSP Projects Limited:
PSP Projects Limited reported a decline in Q2 FY24 earnings, with sales of INR 5,859.66 million, down from INR 6,196.53 million last year. Net income dropped to INR 102.17 million, while earnings per share decreased to INR 2.6 from INR 10.7 a year ago.
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Stock performance of PSP Projects Limited for Period of 1 week, 6 months and 1 year:
As of October 25, 2024, PSP Projects Limited has shown a 8.50% return over the past week, reflecting strong recent performance. Over the last six months, it recorded a modest 0.41% return. However, the company has faced a 13.5% decline over the past year, indicating some challenges in long-term growth.
Shareholding pattern of PSP Projects Limited:
| All values in % | Sep 2024 | Jun 2024 | Mar 2024 |
| Promoter | 60.10% | 60.10% | 60.10% |
| FII | 8.60% | 7.00% | 6.60% |
| DII | 11.00% | 10.50% | 9.20% |
| Public | 20.30% | 22.40% | 24.10% |
About the company PSP Projects Limited:
PSP Projects Limited (NSE: PSPPROJECT) is a multidisciplinary construction company providing a wide range of services across industrial, institutional, government, and residential projects in India. The company offers comprehensive solutions from planning and design to construction, MEP work, and post-construction activities, serving both private and public sector enterprises.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
