Under its expansion spree, IOTL has recently signed a 25-year Build-Own-Operate-Transfer contract for 6,00,000 million kilolitres of crude storage tank capacity at Paradeep Port with Numaligarh Refinery.
The majority of IOTL’s tank capacity is contracted by reputed PSUs and oil majors. With around 80% of IOTL’s capacity under “take-or-pay” contract, there is a good visibility on the future cash flows of the company, Adani Ports said.
In FY22, IOTL’s revenue and Ebitda were Rs 526 crore and Rs 357 crore, respectively. The acquisition price of Rs 1,050 crore implies an EV/Ebitda multiple of approximately eight times on FY22 numbers, the Adani Group company said.
“With this acquisition, APSEZ’s oil storage capacity jumps 200% to 3.6 million kilolitres, making it India’s largest third-party liquid storage company… The deal will further strengthen our strategic partnership with Indian Oil Corporation, a key stakeholder and India’s largest refiner and customer of oil storage tanks,” said Karan Adani, chief executive officer at Adani Ports.