APSEZ consolidates all rail assets under Adani Tracks Management Services


Adani Ports and Special Economic Zone (APSEZ) has said that its composite proposed acquisition of Sarguja Rail Corridor Pvt Ltd (SRCPL) has been approved by the Ahmedabad Bench of the National Company Law Tribunal (NCLT) and will now combine all rail assets under one entity Adani Tracks Management Services Pvt Ltd.

This consolidation will allow APSEZ, which aims to build 2,000 km of track by 2025, to participate in Indian Railways’ public-private partnership (PPP) projects without having to compete with other group companies. , he said in a statement. The composite scheme of arrangement is effective from April 1, 2021. In addition, the acquisition being a related party transaction, APSEZ said it took a fully transparent approach with minority shareholders and creditors for approval.

To improve earnings

Once consolidated, SRCPL will add ₹450 crore or 5% to APSEZ’s total Ebitda (earnings before interest, tax, depreciation and amortization), the statement said. Therefore, this acquisition creates significant business value for APSEZ as a transportation company.

APSEZ, holding a rail portfolio of 620 km, had issued a proposal to acquire 70 km of Sarguja Rail from another Adani Group company in 2019.

“In line with the National Railway Plan 2020, Indian Railways will invest over ₹3,000,000,000 over the next 10 years to construct new railway lines. In addition, the government’s shift in focus from road to rail as the mode of Preferred transportation, an obvious choice both economically and environmentally, will require significant private sector participation, therefore this acquisition creates significant business value for APSEZ as a public transportation utility,” said Karan Adani, CEO of APSEZ.

Published on

February 02, 2022


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