PNC Transfers Stake in SPVs
ROADS & HIGHWAYS

PNC Transfers Stake in SPVs

PNC Infratech Ltd. has received approval from the National Highways Authority of India (NHAI) to transfer its entire 100% stake in three subsidiary companies (Special Purpose Vehicles or SPVs) to Highways Infrastructure Trust (HIT), an Infrastructure Investment Trust (InvIT) managed by KKR & Co Inc. This transaction is part of a larger Rs 9,005 crore agreement signed in January 2024 between PNC Infratech, PNC Infra Holdings (its subsidiary), and HIT.

The three approved SPVs are PNC Bithur Kanpur Highways Pvt Ltd, PNC Gomti Highways Pvt Ltd, and PNC Aligarh Highways Pvt Ltd. These assets are among the twelve road projects included in the deal, encompassing approximately 3,800 lane kilometers across states like Uttar Pradesh, Karnataka, Madhya Pradesh, and Rajasthan. The portfolio consists of eleven National Highway projects under the Hybrid Annuity Mode (HAM) and one State Highway under the Build-Operate-Transfer (BOT) Toll model.

According to insiders, PNC Infratech is in the process of completing prerequisites such as change-in-control approvals from authorities and no-objection certificates (NOCs) from project lenders. NHAI has already approved the transfer for three assets, with approvals for seven more expected by mid-December 2024. PNC aims to close the transaction for ten assets, covering 85% of the total deal value, by the end of FY25.

The final two assets are anticipated to be transferred by the first half of FY26. The deal reflects PNC's strategic divestment approach to streamline operations and generate liquidity.

InvITs like HIT pool investments to own and operate income-generating infrastructure assets, offering investors stable long-term returns. This partnership underscores growing interest in India's infrastructure sector, especially among global investment firms like KKR.

PNC Infratech Ltd. has received approval from the National Highways Authority of India (NHAI) to transfer its entire 100% stake in three subsidiary companies (Special Purpose Vehicles or SPVs) to Highways Infrastructure Trust (HIT), an Infrastructure Investment Trust (InvIT) managed by KKR & Co Inc. This transaction is part of a larger Rs 9,005 crore agreement signed in January 2024 between PNC Infratech, PNC Infra Holdings (its subsidiary), and HIT. The three approved SPVs are PNC Bithur Kanpur Highways Pvt Ltd, PNC Gomti Highways Pvt Ltd, and PNC Aligarh Highways Pvt Ltd. These assets are among the twelve road projects included in the deal, encompassing approximately 3,800 lane kilometers across states like Uttar Pradesh, Karnataka, Madhya Pradesh, and Rajasthan. The portfolio consists of eleven National Highway projects under the Hybrid Annuity Mode (HAM) and one State Highway under the Build-Operate-Transfer (BOT) Toll model. According to insiders, PNC Infratech is in the process of completing prerequisites such as change-in-control approvals from authorities and no-objection certificates (NOCs) from project lenders. NHAI has already approved the transfer for three assets, with approvals for seven more expected by mid-December 2024. PNC aims to close the transaction for ten assets, covering 85% of the total deal value, by the end of FY25. The final two assets are anticipated to be transferred by the first half of FY26. The deal reflects PNC's strategic divestment approach to streamline operations and generate liquidity. InvITs like HIT pool investments to own and operate income-generating infrastructure assets, offering investors stable long-term returns. This partnership underscores growing interest in India's infrastructure sector, especially among global investment firms like KKR.

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