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The SP Jammu Udhampur Highway Limited of the Shapoorji Pallonji Group has been purchased by the National Investment and Infrastructure Fund Limited (NIIFL) through the NIIF Master Fund for an enterprise value of over USD 290 million. Athaang Infrastructure.
a specialised roads platform owned by NIIF Master Fund, will manage Jammu and Kashmir’s (J & K) operational roads. The fund’s road portfolio now includes four assets with a combined revenue rate of more than USD 170 million per year as a result of this acquisition..
SP Under a Build-Operate-Transfer (Annuity) concession from the National Highways Authority of India (NHAI), Jammu Udhampur developed the highway project. The NHAI makes fixed, semi-annual payments to the project, supplying consistent and dependable cash flows.
This four-laned 64.5 km highway provides an essential link between Jammu and Srinagar, enabling seamless movement of traffic and goods, with enhanced inter-region connectivity and a significant reduction of travel time between the two cities. There is a 1.4 km twin-tube tunnel section on the highway.
Another road asset in J&K that NIIF Master Fund has purchased is the Navayuga Quazigund Expressway. The 6-lane Devanahalli Tollway in Bengaluru and the 4-lane Dichpally Tollway in Telangana are included in the fund’s portfolio of roads.
In August 2022, the National Investment and Infrastructure Fund Limited (NIIFL) announced the acquisition of a 100% equity stake in SP Jammu Udhampur Highway Limited, a Special Purpose Vehicle (SPV) developed by the Shapoorji Pallonji Group. The transaction was valued at over USD 290 million and was executed through the NIIF Master Fund.
Project Overview
The acquired asset is a 64.5 km, four-lane highway connecting Jammu and Udhampur in Jammu and Kashmir. This strategic infrastructure project enhances connectivity to the Shri Mata Vaishno Devi Shrine, a significant pilgrimage site, thereby facilitating smoother movement of traffic and goods between the two cities. The highway includes a 1.4 km twin-tube tunnel stretch, which is particularly noteworthy given the challenging hilly terrain of the region.
Financial Structure and Revenue Model
Developed under a Build-Operate-Transfer (Annuity) basis, the project operates under a concession agreement with the National Highways Authority of India (NHAI). This arrangement ensures fixed, semi-annual payments from NHAI, providing steady and predictable cash flows to the asset holder. The acquisition aligns with NIIFL’s strategy to diversify its portfolio with a mix of toll and annuity-based assets, thereby balancing risk and return.
Strategic Significance
This acquisition marks NIIFL’s second road asset in Jammu and Kashmir, reinforcing its position as a significant institutional investor in the region. The enhanced connectivity is expected to stimulate economic activities, attract investments, and promote trade in Jammu and Kashmir. Additionally, the improved infrastructure is anticipated to reduce travel time, benefiting both commuters and the transportation sector.
Another road asset in J&K that NIIF Master Fund has purchased is the Navayuga Quazigund Expressway. The 6-lane Devanahalli Tollway in Bengaluru and the 4-lane Dichpally Tollway in Telangana are included in the fund’s portfolio of roads.
Post-acquisition, the highway is managed by Athaang Infrastructure, NIIFL’s proprietary roads platform. Athaang Infrastructure is responsible for the operation and maintenance of the asset, ensuring that it meets the required standards and delivers optimal performance. This management structure leverages NIIFL’s expertise in infrastructure development and asset management.
Legal and Advisory Support
The transaction was supported by DSK Legal as legal counsel and PwC as finance and tax advisors. Their expertise facilitated the complex process, which involved simultaneous equity closure and refinancing of listed Non-Convertible Debentures (NCDs). This strategic approach underscores NIIFL’s commitment to executing sophisticated infrastructure deals.
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Construction, Infrastructure and Mining
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