Private Equity

Liquidity Events

Adani Group to buy Macquarie's stake in toll roads in AP, Gujarat

Business Line  

Adani Group's road infrastructure development arm, Adani Road Transport Ltd (ARTL), will acquire Macquarie Asia Infrastructure Fund's stake in toll road projects Gujarat Road and Infrastructure Company Ltd (GRICL) and Swarna Tollway Pvt Ltd (STPL) at an enterprise value of INR 3,110 crore. Macquarie Asia Infrastructure Fund holds 56.8% in GRICL and 100% in STPL. The transaction is expected to close in September 2022. The GRICL portfolio has an LTM EBITDA of INR 456 crore with about INR 165 crore of net debt. This translates into an EV/EBITDA multiple of approx. 6.8x. The acquisition of STPL gives ARTL strong foothold in Andhra Pradesh with two stretches of toll roads in the State i) Tada to Nellore 110-km stretch on NH-16 connecting important ports such as Chennai, and Krishnapatnam and ii) Nandigama to Ibrahimpatnam to Vijayawada on NH-65 spanning 48 km connecting key southern metro cities and providing feeder traffic to NH16. In Gujarat, GRICL's two stretches of toll roads include i) Ahmedabad to Mehsana on SH-41 spanning 51.6 km with 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. Apart from Macquarie, GRICL shareholders include IL&FS which owns 26.8% and the Government of Gujarat, which owns the remaining 16.4%.