+
Edelweiss’s Sekura Roads acquires Thrissur Expressway for Rs 8 bn
ROADS & HIGHWAYS

Edelweiss’s Sekura Roads acquires Thrissur Expressway for Rs 8 bn

According to several sources familiar with the matter, Sekura Roads, backed by Edelweiss, is preparing to acquire Thrissur Expressway (TEL), a 28-kilometer road asset owned by KMC Constructions, in a deal valued at Rs 8 billion. Currently, KMC Infratech holds approximately 90 per cent equity stake in TEL, while China Railway 18th Bureau Group Corporation Limited (CR18G) holds the remaining 10 per cent.

In 2021, the India Resurgence Fund, promoted by Piramal Enterprises and Bain Capital Credit, invested Rs 5.55 billion ($75 million) in Thrissur Expressway to restructure TEL's existing debt and provide last-mile financing for project completion.

Established in 2009, Thrissur Expressway (TEL) is a Special Purpose Vehicle (SPV) responsible for the six-laning of the Vadakancherry-Thrissur section of NH-47, covering a distance of 28.355 kilometers in Kerala. The project operates under the Design-Build-Finance-Operate (DBFO) basis, with a Concession Agreement (CA) from NHAI. KMC Constructions and China Railway 18th Bureau Group Corporation Limited (CR18G) were selected by NHAI as the consortium to execute the project, with a shareholding ratio of 74:26.

When approached for comment, an Edelweiss spokesperson declined to provide any information, and emails sent to KMC did not receive a response. Sekura Roads, planning to launch an InvIT (Infrastructure Investment Trust), has been actively acquiring road assets through inorganic growth strategies in recent years.

In December 2022, Sekura entered into a Rs 60 billion deal to acquire a portfolio of eight roads spanning 4,900 lane kilometers and one transmission project from L&T Infrastructure Development Projects and Canada Pension Plan Investment Board. In 2020, the company acquired two road projects totaling 119 lane kilometers from the Navayuga group. The roads sector has been witnessing significant deal activity.

Just last month, Canada's British Columbia Investment Management Co and Mubadala led a $630 million investment in Cube Highways InvIT. As reported by a news publication on April 23, KKR, Sekura, and Cube Highways are in a race to acquire a portfolio of 11 road assets from Ashoka Concessions, valued at approximately Rs 55 billion. KKR has also signed agreements to acquire a portfolio of four roads from HG Infra Engineering and one toll road from the Navayuga group. Private equity firm Actis is also considering the acquisition of a road portfolio from Patel Infrastructure, with an enterprise valuation of around Rs 15 billion.

Rating agency ICRA predicts a significant increase in road execution activity in FY2024, estimating a growth of 16-21 per cent to reach 12,000-12,500 kilometers, driven by a robust project pipeline, increased government capital spending, and a focus on completing projects prior to the general election.

Also Read
Madhya Pradesh seek bids for construction of 6 lane flyover at Dewas Naka
Kaloor-Kadavanthra road revamp: A major city attraction


According to several sources familiar with the matter, Sekura Roads, backed by Edelweiss, is preparing to acquire Thrissur Expressway (TEL), a 28-kilometer road asset owned by KMC Constructions, in a deal valued at Rs 8 billion. Currently, KMC Infratech holds approximately 90 per cent equity stake in TEL, while China Railway 18th Bureau Group Corporation Limited (CR18G) holds the remaining 10 per cent. In 2021, the India Resurgence Fund, promoted by Piramal Enterprises and Bain Capital Credit, invested Rs 5.55 billion ($75 million) in Thrissur Expressway to restructure TEL's existing debt and provide last-mile financing for project completion. Established in 2009, Thrissur Expressway (TEL) is a Special Purpose Vehicle (SPV) responsible for the six-laning of the Vadakancherry-Thrissur section of NH-47, covering a distance of 28.355 kilometers in Kerala. The project operates under the Design-Build-Finance-Operate (DBFO) basis, with a Concession Agreement (CA) from NHAI. KMC Constructions and China Railway 18th Bureau Group Corporation Limited (CR18G) were selected by NHAI as the consortium to execute the project, with a shareholding ratio of 74:26. When approached for comment, an Edelweiss spokesperson declined to provide any information, and emails sent to KMC did not receive a response. Sekura Roads, planning to launch an InvIT (Infrastructure Investment Trust), has been actively acquiring road assets through inorganic growth strategies in recent years. In December 2022, Sekura entered into a Rs 60 billion deal to acquire a portfolio of eight roads spanning 4,900 lane kilometers and one transmission project from L&T Infrastructure Development Projects and Canada Pension Plan Investment Board. In 2020, the company acquired two road projects totaling 119 lane kilometers from the Navayuga group. The roads sector has been witnessing significant deal activity. Just last month, Canada's British Columbia Investment Management Co and Mubadala led a $630 million investment in Cube Highways InvIT. As reported by a news publication on April 23, KKR, Sekura, and Cube Highways are in a race to acquire a portfolio of 11 road assets from Ashoka Concessions, valued at approximately Rs 55 billion. KKR has also signed agreements to acquire a portfolio of four roads from HG Infra Engineering and one toll road from the Navayuga group. Private equity firm Actis is also considering the acquisition of a road portfolio from Patel Infrastructure, with an enterprise valuation of around Rs 15 billion. Rating agency ICRA predicts a significant increase in road execution activity in FY2024, estimating a growth of 16-21 per cent to reach 12,000-12,500 kilometers, driven by a robust project pipeline, increased government capital spending, and a focus on completing projects prior to the general election. Also Read Madhya Pradesh seek bids for construction of 6 lane flyover at Dewas NakaKaloor-Kadavanthra road revamp: A major city attraction

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code