NIIF acquires J&K highway project for $290 million after Shapoorji Pallonji Group exits

Deal to reduce SP Group debt by ₹1,850 crore

National Investment and Infrastructure Fund Ltd (NIIFL) has announced the acquisition of a 100% equity stake in the Shapoorji Pallonji Group’s SP Jammu Udhampur Highway Ltd through the NIIF Master Fund at an enterprise value of over $290 million. (Approximately ₹2,290 crore).

NIIF is a collaborative investment platform for international and Indian investors, anchored by the Government of India, which manages funds with investments in different asset classes and diversified sectors.

The operational road in the union territory of Jammu and Kashmir (J&K) will be managed by NIIF Master Fund’s proprietary roads platform Athaang Infrastructure.

This acquisition further expands the fund’s road portfolio to four assets with an aggregate revenue rate of more than $170 million per annum, NIIFL said in a statement.

SP Jammu Udhampur developed the highway project under concession from the National Highways Authority of India (NHAI) on a Build-Operate-Transfer (Annuity) basis. The project receives fixed, semi-annual payments from NHAI, providing steady and predictable cash flows.

“We are now amongst the largest institutional investors in J & K with our two large road acquisitions. The acquisition reinforces our team’s strong underwriting capabilities in successfully closing a complex transaction involving simultaneous equity closure and refinancing of listed Non-Convertible Debentures (NCDs),” said Vinod Giri, managing partner, NIIF Master Fund.

Jai Mavani, Group executive director (Corporate Finance and M&A)says, “The Jammu Udhampur divestment is another milestone in SP Group’s continuing journey of successfully developing, value engineering and monetising strategic projects. This transaction also results in an effective reduction of approximately Rs 1,850 crore of consolidated Group debt besides unlocking of equity.”