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Macquarie Asset Management has started selling its portfolio of nine toll road projects in India, valued at around INR 10,000 crore. Spanning 648 km across Andhra Pradesh and Gujarat, these highways include stretches of NH-16 and roads connecting industrial hubs and ports. The assets have been bundled into three groups to attract a wider range of buyers. Acquired in 2018 through India's first Toll-Operate-Transfer (ToT) auction, the projects generated nearly INR 1,000 crore in toll revenue in FY25. JP Morgan has been appointed to advise on the transaction, which is expected to attract infrastructure investors looking for long-term cash flows.
Macquarie Asset Management has launched the process to divest its Indian highway portfolio, aiming for an enterprise value of around INR 10,000 crore. The portfolio consists of nine toll projects spread over 648 km, located in Andhra Pradesh and Gujarat, with commercial traffic contributing more than 80% of toll collections. The decision to divide the assets into three bundles, rather than a single sale, is intended to make the deal accessible to a larger group of investors and improve competitive bidding. Advertisement
The first bundle comprises Siddhantham, Ankapalli, and Bamanbore Tollways. Bundle two includes Diwantham, Garamore, and Icchapuram Tollways, while the third contains Diwancheruvu, Puintola, and Porbandar Jetpur Tollways. These highways, originally acquired in 2018 for INR 9,681 crore under the ToT auction framework, are held through Safeway Concessions, backed by Macquarie's Asia Infrastructure Fund 2 and 3.
In FY24, the portfolio (excluding Porbandar Jetpur) recorded toll revenues of INR 962.2 crore, a 10% increase from FY23, with average daily collections of INR 2.64 crore. Collections during the first eight months of FY25 rose a further 6.5% to INR 669 crore. The Andhra Pradesh stretches, forming part of the Golden Quadrilateral's NH-16, account for nearly 71% of the revenue, connecting multiple ports and industrial clusters, while the Gujarat roads provide access to the ceramic hub of Morbi and the Kandla and Mundra ports.
Investors are drawn to the long concession period of 30 years and steady cash flows supported by commercial traffic. The portfolio also benefits from past infrastructure developments in India, including the expansion of national highways and increased port connectivity, which have driven higher usage and toll revenues. Macquarie, which has significant investments in India's renewable energy and electric mobility sectors, is expected to attract domestic and international infrastructure investors through this transaction.
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