Anantam Highways Trust Acquires Multiple Expressway Assets and Issues Units in Preferential Offer

Anantam Highways Trust Acquires Multiple Expressway Assets and Issues Units in Preferential Offer​

Anantam Highways Trust has announced a major investment move, approving the acquisition of seven expressway entities under Right of First Offer Agreements (ROFO). The trust is simultaneously undertaking a significant preferential issuance of units to fund these acquisitions.

The Board of Directors approved the 100% acquisition of several infrastructure companies, including Bethamangala Expressway Private Limited (BEPL), DAK Package -I Expressway Private Limited (DPEPL), Katra Expressway Private Limited (KEPL), Poondiyankuppam Highways Limited (PHL), Bangarupalem Gudipala Highways Limited (BGHL), Raipur-Visakhapatnam-CG-2 Highways Limited (RVHL), and Mehgama Hansdiha Highways Limited (MHHL). The total consideration for this acquisition is capped at ₹ 1893.72 crores.

In addition to the acquisitions, the Trust will issue up to 164,803,867 units through a preferential issuance with an issue price set at ₹104.76 per Unit. This issuance aims to raise an aggregate consideration of up to ₹ 1726.49 crores (other than cash) for the purchase of stakes in various target companies.

The acquisitions and unit issuance are part of Anantam Highways Trust's investment strategy, which is expected to enhance revenue stream stability, expand the portfolio size, and achieve geographical diversification across its assets. The acquisition is anticipated to improve operational continuity by increasing the weighted average life of the Trust’s assets.

Acquisition and Financing Details​

The ROFO Assets targeted for acquisition include various Expressway entities operating in India. A detailed breakdown of the cost of acquisition compared to the Enterprise Value is provided below:


The acquisition involves cash payments and the issuance of units. Specifically, approximately 75.01% of securities in PHL will be acquired using non-cash consideration via unit issuance. For BGHL, RVHL, BEPL, DPEPL, and KEPL, 100% of the relevant securities are being acquired. Meanwhile, 49% of the MHHL securities will be acquired through this preferential issue.

Operational Profile of Acquired Assets​

The seven entities proposed for acquisition operate in the Infrastructure-Roads & Highways sector. Key details regarding these assets include their location, project length, and operational status:

Financial Performance of Target Entities​

The target companies have reported varied turnover over the past three fiscal years, demonstrating their operational scale:

ANANTAM Stock Price Movement​

Today, Anantam Highways Trust shares edged up, settling at ₹105 after gaining 0.87%. The stock traded within a narrow intraday range, hitting a low of ₹104.1 and a high of ₹105.99.