Adani Enterprises Limited, through its wholly owned subsidiaries Adani Road Transport Limited (ARTL) and Adani Road GRICL Limited, has acquired a 100% stake in Path Highways LLP (PATH). The total consideration for this acquisition amounts to ₹91.34 crore. This move aligns with Adani’s strategy to expand its footprint in the road infrastructure development sector.
Adani Enterprises Boosts Road Infrastructure Portfolio
Adani Enterprises Limited announced today the acquisition of a controlling stake in Path Highways LLP (PATH), a move designed to bolster its presence in the road infrastructure development sector. The transaction was executed through two of Adani’s wholly owned subsidiaries: Adani Road Transport Limited (ARTL) and its step-down subsidiary, Adani Road GRICL Limited. This strategic acquisition strengthens Adani’s overall portfolio in the essential infrastructure domain.
Deal Structure and Financials
The acquisition involved obtaining 99.99% and 0.01% stakes in PATH Highways LLP from Prakash Asphalting and Tolls Highway (India) Limited and Mrs. Neeti Agarwal, respectively. The total cost of this acquisition is reported to be ₹91.34 crore, subject to closing adjustments. Prior to this deal, ARTL and PATH jointly held a 74% stake in Mancherial Repallewada Road Limited, Suryapet Khammam Road Limited, and Bilaspur Pathrapali Road Limited. Post-acquisition, ARTL will hold a 99.99% shareholding in these entities.
Strategic Rationale
Path Highways LLP, incorporated in December 2018, functions as an investment holding vehicle focused on road infrastructure assets. The acquisition is a direct continuation of Adani Enterprises’ strategy to aggressively expand its footprint and capabilities within the critical road infrastructure development industry. The company views this segment as a key growth area contributing to India’s burgeoning connectivity and logistics network.
Source: BSE
