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
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code