Adani Enterprises’ Toll Road Purchase Deal Falls Through: What Went Wrong?


Adani Enterprises, a diversified conglomerate with interests in various industries, has terminated its agreement to purchase a toll road portfolio from Macquarie Asia Infrastructure Fund for Rs 3,110 crore. The toll road portfolio was located in Andhra Pradesh and Gujarat. Adani Road Transport, a wholly-owned subsidiary of Adani Enterprises, was responsible for the decision to terminate the pact.

The termination of the deal comes as a surprise, as it was announced just a few months ago. At the time, Adani Enterprises said that the acquisition would help it to expand its presence in the infrastructure sector. However, it is now unclear why the company has changed its mind.

The termination of the deal is also a blow to Macquarie Asia Infrastructure Fund, which had been looking to sell the toll road portfolio for some time. The fund had reportedly received several other offers for the portfolio, but Adani Enterprises’ offer was the highest.

In addition to the toll road deal termination, both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have removed Adani Enterprises’ securities from the short-term ASM (Additional Surveillance Mechanism) framework. The ASM framework is used to keep a watch on securities that are considered to be volatile in order to protect investors and reduce risks. This move follows a sharp decline in the share price of Adani Enterprises in recent times.

The share price of Adani Enterprises has fallen by over 50% in the past year. This decline has been attributed to a number of factors, including concerns about the company’s debt levels, its exposure to the coal industry, and its corporate governance practices.

The termination of the toll road deal and the removal of Adani Enterprises from the ASM framework are likely to further weigh on the company’s share price. It remains to be seen how Adani Enterprises will recover from these setbacks.

Here are some additional details about the toll road portfolio and the ASM framework:

The toll road portfolio consists of two roads in Andhra Pradesh and Gujarat. The roads have a total length of 158 kilometers and generate annual revenue of around Rs 200 crore.
The ASM framework is a set of measures that are designed to protect investors and reduce risks in the stock market. The framework includes measures such as placing limits on short selling and requiring market makers to provide liquidity in the market.