3 bidders in race to buy R-Infra projects at enterprise value of Rs 6k cr

Three bidders are in the race to acquire eight road projects of Reliance Infrastructure, an Anil Ambani company, at an enterprise valuation of Rs 6,000 crore.

Bankers indicated that discussions are at an advanced stage with Macquarie Group, Cube Highways, and Kotak Alternative Asset Managers. The sale of the entire road portfolio of Reliance Infrastructure is anticipated by the end of this month.

Should the negotiations prove fruitful, the transaction will lead to a reduction in Reliance Infrastructure’s consolidated debt by over 40 per cent, decreasing from Rs 14,500 crore as of March this year to approximately Rs 8,500 crore.

The projects on offer include 88.27 kms from Trichy to Dindigul, 136.36 kms between Salem and Ulundurpet, 66.18 kms from Gurgaon to Faridabad, 79.95 kms from Trichy to Karur, 54 kms from Dindigul to Samayanallur, 60 kms from Hosur to Krishnagiri, a 140 kms four-laned road project between Pune and Satara, and the 33.48 kms Namakkal to Karur highway project.

Reliance Infrastructure chose not to comment. Emails dispatched to Macquarie, Cube Highways, and Kotak remained unanswered.

Macquarie AsiaPacific Infrastructure Fund operates under Macquarie Asset Management, overseeing assets worth over $125 billion. Cube Highways and Infrastructure have the backing of ISquared Capital, a $40 billion global fund. Kotak Alternate Asset Managers’ Alternate Assets business has successfully raised, advised, or managed over $8.8 billion from a diverse array of domestic and international investors across multiple asset classes such as real estate, private equity, special situations, infrastructure, and investment advisory, according to its website.

In January 2021, Reliance Infrastructure announced the completion of the sale of its Delhi-Agra (DA) toll road to Cube Highways and Infrastructure for Rs 3,600 crore. The entire sale proceeds were channelled towards debt reduction within the same financial year.