PNC gets NHAI nod to transfer two more road assets to KKR-backed HIT

Approval is part of the Rs 9,000-crore deal between PNC Infratech and HIT

PNC Infratech has received in-principle approval from the National Highways Authority of India (NHAI) to transfer two additional road assets—PNC Bundelkhand Highways and PNC Khajuraho Highways—to Highways Infrastructure Trust (HIT), an infrastructure investment trust (InvIT) backed by US-based private equity firm KKR, the company stated in an exchange filing.

 

The two assets are valued at over Rs 133 crore.

 

With this development, the Rs 9,000-crore deal between PNC Infratech and HIT is on track for closure by March 31, 2025. The company is currently fulfilling conditions precedents (CPs) required for the transaction. According to a source familiar with the matter, major CPs include obtaining change in control approvals from highway authorities and no objection certificates (NOCs) from project lenders.

 

 

PNC has already secured change in control approvals from NHAI for eight assets, and approvals for the remaining two are expected by January 2025. NOCs have also been obtained from nearly all lenders involved in the projects, the source added.

 

Deal timeline 

PNC Infratech expects to finalise the deal for 10 of the 12 road assets by the end of the current financial year, representing about 85 per cent of the total deal value. The transaction for the remaining two assets is expected to conclude by the first half of FY26, the source further stated.

 

At its annual general meeting on September 28, 2024, PNC Infratech had approved the sale of 12 road assets, including the two mentioned above, at an enterprise value of Rs 9,006 crore.