Adani To Buy Macquarie Asia Infrastructure Fund’s Four Toll Roads In Gujarat, Andhra Pradesh

Adani Road Transport Ltd., a unit of Adani Enterprises Ltd., is set to buy Macquarie Asia Infrastructure Fund’s toll roads in Andhra Pradesh and Gujarat.

The company has signed a definitive agreement to acquire 100% stake in Swarna Tollway Pvt. and 56.8% stake in Gujarat Road and Infrastructure Co. for Rs 3,110 crore, according to an exchange filing.

The transaction, subjected to regulatory approval, is expected to close in September 2022.

Apart from Macquarie Asia Infrastructure Fund, IL&FS and Gujarat government hold 26.8% and 16.4% stake, respectively, in Gujarat Road and Infrastructure.

"Post acquisition of the stake in GRICL, ARTL will also evaluate the acquisition of IL&FS stake in GRICL," the statement said.

The portfolio has last twelve-month Ebitda of Rs 456 crore with Rs 165 crore of net debt. This translates into an EV/Ebitda multiple of nearly 6.8x.

"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 statement said.

Swarna Tollway has two stretches of toll roads in Andhra Pradesh. The Tada to Nellore part on NH-16 connects important ports such as Chennai, and Krishnapatnam in Andhra Pradesh spanning 110 km. And the Nandigama to Ibrahimpatnam to Vijayawada stretch on NH-65 spanning 48 km connects key southern metro cities and provides feeder traffic to NH16.

Meanwhile, Gujarat Road and Infrastructure also has two stretches of toll roads. Ahmedabad to Mehsana on SH-41 spanning 51.6 km with majority passenger traffic connecting important northern Gujarat corridors. And Vadodara to Halol on SH-87 spanning 31.7 km which is on the Delhi-Mumbai Industrial Corridor with proximity to several industries.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.