Adani to acquire Macquarie's toll road portfolio in AP, Gujarat for Rs 3,110 cr

The Adani Group on Thursday said it will acquire Macquarie Asia Infrastructure Fund’s toll road portfolio in Andhra Pradesh and Gujarat for Rs 3,110 crore. The portfolio of 972 lane km has a long concession life with established traffic in strategically located and important traffic corridors in western and southern India, the group said in a statement.

“Adani Road Transport Ltd (ARTL), a wholly-owned subsidiary of Adani Enterprises Ltd (AEL), engaged in the development, construction, operations and management of roads and highway projects in India, has entered into a definitive agreement to acquire Gujarat Road and Infrastructure Company Ltd (GRICL) (owned 56.8 per cent by Macquarie Asia Infrastructure Fund) and Swarna Tollway Private Ltd (STPL) (owned 100 per cent by Macquarie Asia Infrastructure Fund),” said Adani Enterprises in a submission to the Bombay Stock Exchange (BSE).

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“ARTL will acquire 56.8 per cent in GRICL and 100 per cent stake in STPL subject to regulatory approval. The transaction is expected to close in September 2022,” it added. The acquisition is at an enterprise value of Rs 3,110 crore, according to the statement.

Over the years, Adani Enterprises has focused on building emerging infrastructure businesses and divesting them into separate listed entities.

Acquired properties

STPL has two stretches of toll roads in Andhra Pradesh: i) Tada to Nellore on NH-16 connecting important ports such as Chennai, and Krishnapatnam in Andhra Pradesh, spanning 110 km and ii) Nandigama to Ibrahimpatnam to Vijayawada on NH-65 spanning 48 km, which connects key southern metro cities and provides feeder traffic to NH16. Together the STPL portfolio has demonstrated strong historical revenue growth.

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GRICL has two stretches of toll roads in Gujarat: i) Ahmedabad to Mehsana on SH-41 spanning 51.6 km with majority passenger traffic connecting important northern Gujarat corridors and ii) Vadodara to Halol on SH-87 spanning 31.7 km which is on Delhi Mumbai Industrial Corridor with proximity to several industries.

“Together, the GRICL portfolio has demonstrated strong historical revenue growth,” said the Adani statement. “Macquarie Asia Infrastructure Fund owns 56.8% stake, IL&FS owns
26.8% stake and Government of Gujarat owns the balance stake. Post acquisition of the stake in GRICL, ARTL will also evaluate the acquisition of IL&FS stake in GRICL.”