Indus Infra Trust to buy Kerala highway for up to ₹1,000.84 cr
The trust is deploying fresh equity into a stabilised, toll-road asset with 14 years of annuity cash flows remaining.
What's new
- Indus Infra Trust is acquiring ULCCS Kasaragod Expressway for up to ₹1,000.84 cr enterprise value.
- The asset is a 39-km, six-lane HAM road on NH-66 with 14.22 years of concession life left.
- Deal is all-cash, with the seller having already secured NHAI clearance for the transfer.
Why this matters
This is the first major deployment of the ₹5,330 crore in equity the trust recently raised. A stabilised HAM road with 29 bi-annual annuity payments provides predictable cash flow, which is the stated objective. The ₹1,000.84 cr price tags the trust's willingness to pay for yield in the current environment.
What we're watching
- The final close by September 30, 2026, and any changes to the ₹1,000.84 cr price.
- How the acquisition impacts the trust's distribution yield for unitholders.
- Whether the trust pursues further road assets with the remaining capital.
The full read
Indus Infra Trust is paying up to ₹1,000.84 crore for a 39-km Kerala highway, its first big deployment after raising ₹5,330 crore in equity. The road is a hybrid annuity asset on NH-66, operational since August 2025, with 14.22 years of concession life and 29 bi-annual annuity payments left. That's the appeal: predictable, long-dated cash flow from a completed road. The seller, Uralungal Labour Contract Co-operative Society, already has NHAI clearance. The trust calls the deal yield-accretive, which is code for it boosting distributions to unitholders. At ₹1,000.84 crore, this is a material step into the asset class the trust was built to own. The open question is how quickly it can deploy the rest of the freshly raised capital.
Questions answered
- What is Indus Infra Trust buying?
- It's acquiring ULCCS Kasaragod Expressway Private Limited, which owns a 39-kilometre, six-lane highway in Kerala built under the hybrid annuity model. The road is part of the Bharatmala Pariyojana on NH-66.
- What is the price, and how is it structured?
- The enterprise value is up to ₹1,000.84 crore, with a cost of acquisition of up to ₹443.98 crore. It's an all-cash deal, targeting completion by September 30, 2026.
- Why is this asset attractive?
- The highway became operational in August 2025 and has 14.22 years of remaining concession life, with 29 bi-annual annuity payments. This provides stable, long-dated cash flow, which the trust says is yield-accretive.
- What is the seller's background?
- The seller is the Uralungal Labour Contract Co-operative Society. It has secured clearance from the National Highway Authority of India to transfer the asset.