The story
Sep 2005 - LOI Issued by GOP for Port Development at Karaikal
Jan 2006 - Concession Agreement Signed
May 2006 - Received MOEF Clearance for Phase 1
Nov 2006 - Financial Closure for Phase 1 Achieved
Feb 2007 - Final Tranche of Land Received
Feb 2007 - Development for Phase 1 Commenced
Mar 2009 - Phase 1 completed
Apr 2009 – Karaikal Port Receives first Vessel
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As MARG Infrastructures defaulted on the repayment of loans obtained by a consortium of banks headed by Indian Bank, the port left from the hands of the company and the pledged shares of the managing directors were transferred to the lead bank. In addition to the consortium of banks having a controlling stock in KPPL, its promoter, Marg Ltd., owned 45% of the share control of the port administrator.
In 2015, Edelweiss Asset Reconstruction Company took over 97% of the port’s ₹1,800 crore bank debt, turned around operations, brought in management changes and started setting up an LNG terminal. Edelweiss also converted part of its debt exposure to equity and now holds 11% stake in the company.
In May 2021, Adani Ports and Special Economic Zone Limited is looking to buy Karaikal port in Puducherry at a valuation of ₹1,500-2,000 crore but multiple sources said that the deal is “not easy” to consummate given the ownership structure and the debt. In April 2023, APSEZ acquired the port.
From Wikipedia’s article on Karaikal Port, shared under CC BY-SA 4.0.4