Adani Enterprises' JV April Moon Retail Acquires 74% Stake In Cococart Ventures Worth Rs 200 Crore; Check

Adani Enterprises Ltd, through its step-down subsidiary Adani Airport Holdings Ltd (AAHL), has made an acquisition in the retail and food & beverage sector. On September 27, 2024, the company announced that its joint venture, April Moon Retail Private Ltd (AMRPL), will acquire a controlling 74% stake in Cococart Ventures Private Ltd (CVPL).

The acquisition is valued at Rs 200 crore and is structured through a combination of share purchase and subscription agreements, indicating Adani's intent to strengthen its presence in the retail industry. The agreements were finalized on September 27, 2024.

The acquisition involves multiple agreements, namely a Share Purchase Agreement (SPA), a Share Subscription Agreement (SSA), and a Joint Venture Agreement (JVA). Under the SPA, AMRPL will acquire 14,73,518 shares, representing 36.96% of CVPL's equity. Through the SSA, AMRPL will subscribe to an additional 14,76,471 shares, equivalent to 37.04% of CVPL's equity.

Cococart Ventures Private Ltd (CVPL), founded in September 2020, specializes in the buying, selling, relabeling, and trading of goods at both retail and wholesale levels. CVPL also operates cafés across India.

In the fiscal year 2023 (FY23), CVPL reported a turnover of Rs 99.63 crore, nearly doubling from Rs 51.61 crore in FY22. This growth is even more remarkable compared to FY21 when the company's turnover stood at a modest Rs 6.89 crore.

The collaboration will formalize a joint venture between AMRPL and CVPL's existing shareholders, Karan Ahuja and Arjun Ahuja. This partnership aims to expand CVPL's business operations, establishing a clear framework for mutual rights, responsibilities, management, governance, and overall commercial understanding. This joint venture is expected to amplify CVPL's business operations and contribute to Adani's expanding portfolio.

The transaction is expected to be completed by October 31, 2024. The agreements laid down in the SPA, SSA, and JVA will not only grant Adani a controlling stake but will also ensure a smooth transition and collaboration between the involved parties.

The shares of Adani Enterprises Ltd closed at Rs 3,131.15 on the BSE, up by Rs 10 or 0.32% on Friday (September 27) on the National Stock Exchange (NSE). The stock has seen an uptick of nearly 30% in the last one year.

The acquisition of a majority stake in CVPL positions Adani Enterprises as a formidable player in India's retail sector, which is witnessing exponential growth. With CVPL's strong performance and the backing of a conglomerate like Adani, this partnership is poised to bring innovative retail experiences and expand the group's influence beyond its traditional business sectors.