PSP Projects Signs Share Purchase Agreement With Adani Group: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.PSP Projects Ltd. has entered into a SPA with Adani Infra (India) Ltd. wherein the promoter of PSP Mr. Prahaladbhai S. Patel, will be selling 30.07% equity share capital of PSP, triggering an open offer for public shareholders. As informed by the management, the shareholding of the promoters PSP and Adani will continue to remain the same for the next five years, post the closure of transaction, and the management will be continued to be led by Mr. Patel. The acquisition by Adani group and the partnership between the promoter groups is expected to complement each other’s capabilities, with PSP lending its expertise in the buildings construction segment and Adani group providing it with group orders in the building segment only. We believe PSP is well-poised to benefit from this partnership with captive related-party near-term order pipeline of Rs 35 billion (PSP expects these to be on cost + basis with 10-11% Ebitda margins in line with current guidance). Adani benefits from captive execution capabilities and timely project completion from this strategic investment. We await further clarity (post completion of transaction) on how orders will be split between ITD and PSP and strategic direction for both these companies. To this effect, we continue with our Add rating and target price at Rs 665/share (13 times 1-year forward earnings per share)..Click on the attachment to read the full report:.Here's Why Zinka Logistics Will Not Debut On Stock Exchanges Today .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PSP Projects Signs Share Purchase Agreement With Adani Group: HDFC Securities

The brokerage believes PSP is well-poised to benefit from this partnership with captive related-party near-term order pipeline of Rs 35 billion.

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PSP Projects Signs Share Purchase Agreement With Adani Group: HDFC Securities

The brokerage believes PSP is well-poised to benefit from this partnership with captive related-party near-term order pipeline of Rs 35 billion.

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