PNC Infra gets NHAI nod to transfer 100% stake in 3 subsidiaries to Highways Infra Trust

Infrastructure firm PNC Infratech on Friday said it has received approval to transfer 100 per cent stake in three subsidiary companies (SPVs) of the Uttar Pradesh Road Project held by NHAI to Highways Infrastructure Trust.

9.05 billion between PNC Infratech, PNC Infra Holdings (a subsidiary of PNC Infratech) and Highways Infrastructure Trust (HIT), the company said in a regulatory filing. It said it was part of the statutory procedure under the contract of Rs. InvIT for 12 road assets managed by KKR & Co Inc.

The three subsidiaries/SPVs that have received approval from the National Highways Authority of India (NHAI) are PNC Bithur Kanpur Highways Private Ltd, PNC Gomti Highways Private Ltd and PNC Aligarh Highways Private Ltd.

The agreement, signed in January 2024, includes the sale of 12 road assets owned by PNC Infratech and PNC Infra Holdings, with an enterprise value of Rs 9.05 billion.

This includes 11 National Highways (NH) Hybrid Annuity Mode (HAM) assets and one State Highway BOT tolling asset with approximately 3,800 lane kilometers in Karnataka, Madhya Pradesh, Rajasthan and Uttar Pradesh .

According to people with knowledge of the development, PNC Infratech is in the process of fulfilling the pre-contract conditions, namely: The road authority has approved a “change of control” and the project’s lender has issued a no-objection certificate.

“PNC Infratech has received approval for change of management from NHAI for three properties, and approval for seven more properties is expected to be obtained by mid-December,” the official said.

“Having obtained NOCs from most lenders, PNC Infratech expects to complete transactions on 10 of the 12 assets by the end of this financial year (March 31, 2025), which represents a total of It accounts for 85%.” Added.

The transaction for the remaining two assets is expected to be completed by the first half of 2026, he said.

Infrastructure investment trusts (InvITs) are products based on the pattern of mutual funds that are designed to pool funds from investors and invest them in assets that provide cash flows over a period of time.