Adani Infra Acquires Punj Lloyd for ₹281 Crore in 2026 Deal

Introduction to the Acquisition

Adani Infra (India) Limited has formally initiated the implementation of its acquisition plan for Punj Lloyd Limited, a once-prominent engineering and construction firm. The National Company Law Tribunal (NCLT) Principal Bench in New Delhi approved the acquisition on February 12, 2026, for a total consideration of ₹281.10 crore. This development marks a significant milestone in the liquidation process of Punj Lloyd, paving the way for its revival under the Adani Group's infrastructure arm.

Details of the NCLT-Approved Deal

The acquisition was finalized after Adani Infra emerged as the successful bidder in the 14th round of an e-auction process. The agreed-upon price of ₹281.10 crore matched the reserve price set for the sale. Adani Infra has already deposited ₹28.11 crore as earnest money and is required to pay the remaining balance of ₹252.99 crore within 30 days of the NCLT order. The sale has been conducted on an "as is where is" and "as is what is" basis, meaning Adani Infra acquires the company in its current state. The transaction allows Punj Lloyd to be sold as a "going concern," preserving its operational entity rather than dismantling its assets piecemeal.

The 'Clean Slate' Advantage Under IBC

A critical aspect of this acquisition is the protection granted to Adani Infra under Section 32A of the Insolvency and Bankruptcy Code (IBC). This 'clean slate' provision shields the new owner from the past liabilities, defaults, and legal encumbrances of Punj Lloyd. This legal immunity is crucial for a fresh start, allowing Adani Group to focus on reviving the business without being burdened by historical financial challenges that led to the company's downfall. This protection was a key factor in making the acquisition a viable proposition for investors.

Strategic Expansion for Adani Group

This acquisition represents a calculated strategic move for the Adani Group to deepen its footprint in India's competitive Engineering, Procurement, and Construction (EPC) sector. Punj Lloyd, despite its financial distress, holds historical expertise in complex projects across energy, infrastructure, and defence. By integrating Punj Lloyd's assets and operational capabilities, Adani Group can enhance its in-house EPC services, potentially reducing reliance on external contractors for its large-scale infrastructure projects. This move aligns with Adani's broader strategy of building an integrated infrastructure portfolio spanning ports, power, and transportation.

Punj Lloyd's Journey to Liquidation

Punj Lloyd's decline was a result of severe financial stress accumulated over several years. By 2019, the company was burdened with a debt of approximately ₹6,000 crore. ICICI Bank, a major creditor with dues of around ₹854 crore, initiated insolvency proceedings against the company that year. After a Corporate Insolvency Resolution Process (CIRP) failed to yield a viable resolution plan, the NCLT ordered the company into liquidation in June 2022. The acquisition by Adani Infra provides a resolution after a prolonged period of uncertainty for the company and its stakeholders.

A Comprehensive Restructuring Plan

The acquisition involves a multi-layered restructuring of Punj Lloyd's assets. The plan includes the transfer of the defence business to Adani Defence Systems and Technologies Limited (ADSTL) and the sale of aviation assets to the same entity. Furthermore, stakes in various subsidiaries and joint ventures will be divested to the Diversified India Growth Fund. The core EPC business, along with related arbitration awards, is set to be demerged and transferred to Adani Infra through a separate scheme of arrangement, pending regulatory approvals.

Shareholding and Listing Status

The approved plan mandates a complete overhaul of Punj Lloyd's equity structure. The existing share capital will be cancelled for nil consideration. Following this, new equity shares will be issued, giving Adani Infra a commanding 95% ownership stake. While the company is set to remain listed on the stock exchanges post-acquisition, Adani Infra has also secured approval for a potential delisting in the future. Trading of Punj Lloyd's shares remains suspended on both the BSE and NSE, a standard procedure for companies undergoing insolvency proceedings.

Market Outlook and Conclusion

The revival of Punj Lloyd under Adani's management is expected to intensify competition in the Indian EPC space, currently dominated by giants like Larsen & Toubro and Tata Projects. The success of this acquisition will depend on Adani's ability to effectively integrate Punj Lloyd's operations, secure new projects, and restore stakeholder confidence. For the broader market, this deal underscores the effectiveness of the IBC framework in providing a structured pathway for the resolution of distressed corporate assets. The acquisition marks a new chapter for Punj Lloyd, offering a chance for revival and continued operation within one of India's largest infrastructure conglomerates.