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National Investment and Infrastructure Fund (NIIFL) has acquired the entire stake in Shapoorji Pallonji Group’s SP Jammu Udhampur Highway, through the NIIF Master Fund, at an enterprise value of over $290 million.
NIIFL 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 will be managed by NIIF Master Fund’s proprietary roads platform Athaang Infrastructure.
This acquisition expands the fund’s road portfolio to four assets with an aggregate revenue rate of more than $170 million per annum, NIIFL said
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 cash flows.
Vinod Giri, Managing Partner, NIIF Master Fund, said, “We are now amongst the largest institutional investors in J&K with our two large road acquisitions. The asset fits well with NIIF Master Fund’s strategy to have a balanced portfolio with a mix of toll and annuity assets. We will continue to build the NIIF Master Fund road portfolio with an efficient selection of high-quality assets and superior O&M practices.”
The four-laned 64.5-km highway linking Jammu and Srinagar, including a 1.4-km twin-tube tunnel stretch, cuts travel time between the two cities and enhances inter-region connectivity.
The transaction has effectively reduced about ₹1,850 crore of consolidated SP Group debt, the diversified conglomerate added.
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