Investment proposal of Rs 5,000-6,000 crore

KKR and Ontario Teachers’ Pension Fund (OTPP) are planning to invest Rs 5,000-6,000 crore in Highways Infrastructure Trust (HIT) in India. HIT has many important road projects which it operates. This investment will help HIT to expand its road portfolio and make acquisitions.

• KKR is a leading private equity fund.
• OTPP is a Canada-based pension fund.
• KKR is the sponsor for HIT InvIT, while OTPP is its second largest shareholder.

Acquisition of 12 road projects from PNC Infratech

HIT InvIT is preparing to acquire 12 road projects from PNC Infratech, with a total value of Rs 9,000 crore.

• It is also proposed to acquire two big road projects, whose value is more than Rs 15,000 crore.
• The investment from KKR and OTPP will help finance these acquisitions.
• The agreement for this acquisition was signed between KKR and PNC in January 2024.

NHAI and UP State Highway Projects

Major projects included in HIT’s portfolio:

1. 11 Hybrid Annuity Model (HAM) Projects of NHAI.
2. A toll road: of Uttar Pradesh State Highway Authority (UPSHA).
3. Total road network: 3,800 lane kilometres.

• Geographical location of projects:
  • Rajasthan
  • Uttar Pradesh
  • Madhya Pradesh
  • Karnataka

Acquisition of TOT Bundle-16

HIT is soon going to acquire Toll-Operate-Transfer (TOT) Bundle-16 of NHAI.

• Bundle value: Rs 6,661 crore.
• Location: 252 km stretch between Hyderabad-Nagpur on NH-44 in Telangana.

14 assets in HIT’s portfolio

After the acquisition, HIT will become the largest road operating InvIT in India.

• Current Portfolio: 14 Assets.
• Total length: 3,435 kilometres.
• State: Spread across 9 states.

According to sources, the investment of about $700 million (Rs 5,000-6,000 crore) by KKR and OTPP is expected to be completed in the first quarter of 2025.