As the transaction progresses, APSEZ will continue to engage with all relevant stakeholders, including the Kerala government | Photo Credit: BY ARRANGEMENT

Ruling out allegations that it failed to inform the Kerala government about the proposed sale of a 49 per cent stake in Adani Vizhinjam Port Pvt Ltd (AVPPL), the Adani Group has maintained that the State was informed immediately after the mandatory stock exchange disclosure.

The transaction was disclosed in accordance with applicable SEBI regulations governing listed entities, said Aswani Gupta, CEO of Adani Ports and Special Economic Zone (APSEZ).

“We have announced our binding agreement to sell 49 per cent. However, the share transfer can take place only after obtaining the Kerala government’s approval, as required under the concession agreement. We cannot seek prior approval without having a binding agreement in place,” Gupta said.

He clarified that the signing of the binding agreement merely marks the beginning of the approval process. Besides the State government’s consent, the transaction also requires clearance from the Competition Commission of India (CCI). The shareholding structure will change only after all statutory approvals are secured.

As the transaction progresses, APSEZ will continue to engage with all relevant stakeholders, including the Kerala government, in accordance with applicable contractual, regulatory and governance requirements, he added.

Gupta also sought to allay concerns over the management of the port, asserting that APSEZ will retain majority ownership and operational control even after the stake sale.

While Terminal Investment Ltd. (TIL), the port investment arm of MSC, will acquire a 49 per cent stake and have representation on the board, APSEZ will continue to consolidate, control and manage the port as the majority shareholder. TIL’s board representation will be proportionate to its equity holding and will not alter Adani’s managerial authority, he added.

Gupta said Vizhinjam Port will continue to operate as an open-access, common-user port. The proposed partnership with MSC does not grant exclusive berthing rights to MSC or any of its affiliates, nor does it restrict access for any other shipping line. All eligible shipping companies will continue to have access to the port’s facilities in accordance with applicable regulations and commercial arrangements.

On the concern of national security, he said MSC has had a longstanding presence in India’s maritime sector and already possesses the required security clearances, as it operates terminals at several major Indian ports. The Vizhinjam partnership marks the third major collaboration between APSEZ and MSC after their successful joint ventures at Mundra’s Container Terminal No. 3 and Ennore.

The collaboration will bring the single largest foreign private investment into India’s port infrastructure and accelerate Vizhinjam Port’s emergence as a leading transshipment hub in the Indian Ocean region, he said.

The partnership is expected to strengthen the port’s connectivity with East African trade routes and attract a larger share of Bangladesh-bound cargo that is currently routed through competing Southeast Asian transshipment hubs, enabling cargo volumes to grow much faster than originally projected, he added.

Published on July 6, 2026