+
Shrem InvIT shifts strategy: opts for loans
ECONOMY & POLICY

Shrem InvIT shifts strategy: opts for loans

Shrem Infrastructure Investment Trust (InvIT) has altered its financial approach, opting for loans over debentures to complete the acquisition of 10 special purpose vehicles (SPVs) associated with road projects under Dilip Buildcon Ltd. The InvIT will raise Rs 8.6 billion through term loans, citing financial efficiency as the rationale for this shift.

The decision comes as existing term loan lenders grant approval to employ credit for acquiring the promoter's stake, settling unsecured loans, and addressing senior creditors' debts within identified SPVs. Key lenders to Shrem InvIT, including State Bank of India and Union Bank, hold exposure worth Rs 55 billion. The term loan designated for road project acquisition enjoys an "AAA" rating from Indian Ratings.

Nikhil Pareek, Executive Director of Shrem InvIT, emphasised the trust's focus on operating annuity projects to mitigate execution risks.

Having primarily acquired projects from Dilip Buildcon, Shrem InvIT is now considering opportunities beyond the parent company. The trust is currently evaluating 10 more projects and plans to bolster its capital base by Rs 3.3 billion.

Shrem InvIT aims to conclude the acquisition of 10 new SPVs from Dilip Buildcon by the end of the fourth quarter of financial year 24. With provisional completion dates met and annuities received for eight projects, the trust's portfolio will encompass a diversified range of 34 projects. These include National Highway Authority of India (NHAI) projects, state annuity plus toll projects, state annuity projects, and toll projects, demonstrating the trust's expanded footprint in the infrastructure sector.

As Shrem InvIT consolidates cash flows from both initial and new portfolio SPVs, its consolidated debt stands at Rs 77.351 billion. This encompasses sanctioned term loans earmarked for funding the additional 10 SPVs under the InvIT structure, reflecting the trust's commitment to strategic expansion.

Shrem Infrastructure Investment Trust (InvIT) has altered its financial approach, opting for loans over debentures to complete the acquisition of 10 special purpose vehicles (SPVs) associated with road projects under Dilip Buildcon Ltd. The InvIT will raise Rs 8.6 billion through term loans, citing financial efficiency as the rationale for this shift.The decision comes as existing term loan lenders grant approval to employ credit for acquiring the promoter's stake, settling unsecured loans, and addressing senior creditors' debts within identified SPVs. Key lenders to Shrem InvIT, including State Bank of India and Union Bank, hold exposure worth Rs 55 billion. The term loan designated for road project acquisition enjoys an AAA rating from Indian Ratings.Nikhil Pareek, Executive Director of Shrem InvIT, emphasised the trust's focus on operating annuity projects to mitigate execution risks.Having primarily acquired projects from Dilip Buildcon, Shrem InvIT is now considering opportunities beyond the parent company. The trust is currently evaluating 10 more projects and plans to bolster its capital base by Rs 3.3 billion.Shrem InvIT aims to conclude the acquisition of 10 new SPVs from Dilip Buildcon by the end of the fourth quarter of financial year 24. With provisional completion dates met and annuities received for eight projects, the trust's portfolio will encompass a diversified range of 34 projects. These include National Highway Authority of India (NHAI) projects, state annuity plus toll projects, state annuity projects, and toll projects, demonstrating the trust's expanded footprint in the infrastructure sector.As Shrem InvIT consolidates cash flows from both initial and new portfolio SPVs, its consolidated debt stands at Rs 77.351 billion. This encompasses sanctioned term loans earmarked for funding the additional 10 SPVs under the InvIT structure, reflecting the trust's commitment to strategic expansion.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code