"Three Bidders Compete to Acquire RInfra Road Projects Worth Rs 6,000 Crore"

In a significant development, three prominent bidders, namely Macquarie Group, Cube Highways, and Kotak Alternate Asset Managers, are currently engaged in a fierce competition to acquire eight road projects from Reliance Infrastructure (RInfra), a company under the leadership of Anil Ambani. The potential transaction is valued at an enterprise worth of Rs. 6,000 crore.

Banking sources have revealed that negotiations are at an advanced stage, and the sale of RInfra's entire road portfolio is anticipated to conclude by the end of this month. Successful completion of these talks could lead to a remarkable reduction in RInfra's consolidated debt, lowering it by over 40 percent from Rs. 14,500 crore as of March to approximately Rs. 8,500 crore.

The roster of road projects being considered for sale includes the following:

1. 88.27 km Trichy-Dindigul road


2. 136.36 km road between Salem and Ulundurpet


3. 66.18 km Gurgaon-Faridabad road


4. 79.95 km Trichy-Karur road


5. 54 km Dindigul-Samayanallur road


6. 60 km Hosur-Krishnagiri road


7. 140 km four-lane road project between Pune and Satara


8. 33.48 km Namakkal-Karur highway project

As of now, RInfra has declined to provide an official comment on the matter, and attempts to solicit responses from Macquarie, Cube Highways, and Kotak Alternate Asset have remained unanswered.

Kotak Alternate Asset Managers, a key contender in this race, boasts an alternate asset business with a track record of raising, advising, or managing over $8.8 billion from a diverse group of domestic and international investors. Their expertise spans various asset classes, including real estate, private equity, special situations, infrastructure, and investment advisory.

Notably, in January 2021, RInfra concluded the sale of its Delhi-Agra toll road to Cube Highways and Infrastructure for a sum of Rs. 3,600 crore. The entire proceeds from this sale were utilized to reduce debt.

Macquarie Asia-Pacific Infrastructure Fund operates under the umbrella of Macquarie Asset Management, boasting assets under management (AUM) exceeding $125 billion. Cube Highways and Infrastructure, on the other hand, is backed by ISqaured Capital, a global fund with assets totaling $40 billion.

The outcome of this competitive bidding process will likely have significant implications for RInfra's financial standing and the overall landscape of India's infrastructure sector.

BS