IL&FS Transportation Networks Ltd will divest a part of its stake in two road projects to Delhi-based Oriental Tollroads Pvt. Ltd, it said in a stock exchange disclosure.
Oriental Tollroads will acquire a 10% stake in Gujarat Road and Infrastructure Company Ltd (GRICL) for Rs 83.19 crore ($12.63 million). According to its annual report, the special purpose vehicle (SPV) has developed 185.6 lane km Vadodara Halol road project and 332.6 lane km Ahmedabad Mehsana road project in Gujarat. In financial year 2016-17, the toll collection from both the projects stood at Rs 145.9 crore.
As on 31 March 2017, IL&FS Transportation (ITNL) held a 26.81% stake in the SPV.
In August 2016, MAIF Investment, which is part of Australia’s Macquarie Group Ltd, increased its stake in GRICL from 42% to 56.8%.
Oriental Tollroads will also buy a 14.5% stake in Moradabad Bareilly Expressway Ltd for Rs 80.35 crore ($12.2 million). IL&FS’ stake in the SPV will come down to 85.5% post the sale.
The SPV has developed a 522 lane km highway from Moradabad to Bareilly in Uttar Pradesh. In FY2016-17, the toll road collection from this highway stood at Rs 168.81 crore.
In August 2016, ITNL agreed to sell 86.74% stake in Andhra Pradesh Expressway Ltd to Singapore-based Cube Highways & Infrastructure Pte Ltd, a joint platform of private equity firm I Squared Capital and International Finance Corporation, for Rs 140.37 crore ($21 million).
Cube Highways has been investing in road assets. The other acquisitions made by Cube Highways include Madhucon Agra Jaipur Expressways Ltd for Rs 248 crore and Jaipur Mahua Tollways Pvt. Ltd, which operates a road project in Rajasthan, for Rs 525 crore.
Deals in the road segment
In August 2017, construction firm Dilip Buildcon signed a pact with Shrem Group to sell its stake in 24 road projects for Rs 1,600 crore (around $250 million).
In April 2017, IDFC Alternatives, the private equity arm of infrastructure lender IDFC Ltd, had acquired a majority stake in two road assets from IPO-bound GR Infraprojects Ltd for an undisclosed amount.
In December 2016, Spain’s toll roads operator Abertis entered the Indian market with the acquisition of two road assets from two infrastructure funds jointly managed by India’s largest lender State Bank of India and Australia’s private equity firm Macquarie for €128 million (about Rs 905 crore).