Indus Infra Trust has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
The Board of GR Highways Investment Manager (acting as Investment Manager of Indus Infra Trust) approved the acquisition of three operating highway SPVs from sponsor G R Infraprojects Limited: GR Bilaspur Urga Highway (Chhattisgarh, 70.2 km), GR Ena Kim Expressway (Gujarat, 36.93 km), and GR Ujjain Badnawar Highway (Madhya Pradesh, 69.1 km), all on Hybrid Annuity Mode. The total cost of acquisition is up to Rs. 905 crore (Rs. 9,050 million) with an aggregate enterprise value of up to Rs. 2,700 crore (Rs. 27,002 million), payable in cash. Since G R Infraprojects holds 43.56% units of the Trust, this qualifies as a Related Party Transaction, which is being done at arm's length. The Board also approved raising the consolidated borrowing limit from 49% to 70% of InvIT assets. Both matters will be sent to unitholders for approval via postal ballot. The acquisition is expected to be yield accretive and extend the weighted average life of the InvIT by about 0.74 years.
Positive for unitholders if approved, as the acquisition is described as yield accretive and adds stable annuity income plus extends the InvIT's asset life. However, it also raises leverage toward 70% and is a related party transaction with the sponsor, so unitholder approval is required and debt servicing will need close monitoring.