Actis's Roads InvIT aims to raise Rs 20 billion
ROADS & HIGHWAYS

Actis's Roads InvIT aims to raise Rs 20 billion

The UK-based global private equity firm Actis is considering the possibility of monetising a collection of operational road assets it possesses in India through an infrastructure investment trust (InvIT). This move has the potential to generate as much as Rs 15 to Rs 20 billion. In the previous year, Actis made the acquisition of a portfolio consisting of six roads. These comprised five hybrid annuity model (HAM) properties and one build-operate-transfer (BOT) road. This acquisition was made from Welspun Enterprises, with a total enterprise value of Rs 60 billion.

This acquisition marked Actis' entry into the roads sector in India, following its successful ventures in the renewable energy industry, where it sold two major platforms, namely Sprng Energy and Ostro Energy.

The Long Life Infrastructure Fund of Actis was responsible for acquiring the six roads. This fund specialises in investing in stable, operational assets across various infrastructure sectors, aiming to deliver substantial cash returns to investors. As per the sources mentioned earlier, Actis has submitted an application for the registration of the trust with the Indian market regulator, the Securities and Exchange Board of India (Sebi).

Sebi's approval has been awaited. Simultaneously, progress is being made on the draft prospectus of the InvIT, and they are expected to submit the draft documents within a month. Axis Capital is providing advisory services to Actis for the InvIT fundraising.

The proposed fundraising, which is anticipated to amount to approximately Rs 15 to 20 billion, will primarily be allocated to repaying or prepaying a portion of the debt associated with the road assets, according to the second source.

The UK-based global private equity firm Actis is considering the possibility of monetising a collection of operational road assets it possesses in India through an infrastructure investment trust (InvIT). This move has the potential to generate as much as Rs 15 to Rs 20 billion. In the previous year, Actis made the acquisition of a portfolio consisting of six roads. These comprised five hybrid annuity model (HAM) properties and one build-operate-transfer (BOT) road. This acquisition was made from Welspun Enterprises, with a total enterprise value of Rs 60 billion. This acquisition marked Actis' entry into the roads sector in India, following its successful ventures in the renewable energy industry, where it sold two major platforms, namely Sprng Energy and Ostro Energy. The Long Life Infrastructure Fund of Actis was responsible for acquiring the six roads. This fund specialises in investing in stable, operational assets across various infrastructure sectors, aiming to deliver substantial cash returns to investors. As per the sources mentioned earlier, Actis has submitted an application for the registration of the trust with the Indian market regulator, the Securities and Exchange Board of India (Sebi). Sebi's approval has been awaited. Simultaneously, progress is being made on the draft prospectus of the InvIT, and they are expected to submit the draft documents within a month. Axis Capital is providing advisory services to Actis for the InvIT fundraising. The proposed fundraising, which is anticipated to amount to approximately Rs 15 to 20 billion, will primarily be allocated to repaying or prepaying a portion of the debt associated with the road assets, according to the second source.

Next Story
Infrastructure Urban

KEI Industries Faces Rs 80 Mn Daily Loss Amid Wage Dispute

KEI Industries Limited, one of India's prominent manufacturers of wires and cables, is encountering significant financial challenges, with reported losses amounting to Rs 8 crore per day. The company's operations have been severely impacted by a wage dispute, exacerbating its financial woes amidst broader economic pressures. The wage row has led to disruptions in KEI Industries' production and operational efficiency, affecting its ability to meet market demands and maintain profitability. This situation underscores the critical nature of resolving labour disputes swiftly to mitigate adverse i..

Next Story
Infrastructure Urban

Hyderabad Aims for World-Class Status

Telangana Chief Minister K Chandrasekhar Rao emphasized the state government's commitment to developing Hyderabad into one of the world's best cities. During a recent event, Rao highlighted several key initiatives aimed at enhancing the city's infrastructure, urban planning, and overall quality of life. He noted that the government's comprehensive approach includes substantial investments in various sectors to ensure sustainable growth and development. Rao detailed plans for significant improvements in transportation, including the expansion of metro rail services, upgrading road networks, an..

Next Story
Infrastructure Urban

Ferrari's First Electric Car Debuts

Ferrari is set to launch its first fully electric vehicle (EV), with a price tag exceeding $500,000, as reported by industry sources. This move marks Ferrari's entry into the electric vehicle market, aligning with the global shift towards sustainable mobility and reducing carbon emissions. Ferrari, electric vehicle, $500,000, sustainable mobility, carbon emissions. The new electric Ferrari, expected to debut in 2025, promises to uphold the brand's legacy of high performance and luxury. The vehicle will feature advanced technology, ensuring it delivers the iconic Ferrari driving experience desp..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000

Join us Telegram