BSEIndus Infra TrustHighNeutral
Announced Mon, 8 Jun · 23:16 IST

Indus Infra Trust has informed the Exchange regarding Disclosure of material issue

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Indus Infra Trust has approved the acquisition of 100% equity shareholding in ULCCS Kasaragod Expressway Private Limited (UKEPL) from Uralungal Labour Contract Co-operative Society Ltd for a cash consideration. UKEPL operates a 39 km, 6-lane expressway stretch on NH-66 (Thalapady to Chengala) in Kerala under a Hybrid Annuity Model with a 14.22-year remaining operational life. The enterprise value is up to Rs. 1,000.84 crore, while the cost of acquisition (including unsecured loan) is up to Rs. 443.98 crore. The deal has received NHAI's no-objection certificate, is not a related party transaction, and is targeted to close by September 30, 2026. The acquisition is described as yield accretive for unitholders and aligned with the trust's strategy of building a stable road asset portfolio.

Likely market impact

This acquisition expands Indus Infra Trust's road portfolio with a recently operational HAM asset in Kerala, likely boosting long-term annuity income for unitholders. The cash outlay and NHAI approval suggest a fairly advanced deal, which could be viewed positively if the trust can fund it without excessive leverage.