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Actis's Roads InvIT aims to raise Rs 20 billion

2023-09-15

The UK-based global private equity firm Actis is considering the possibility of monetising a collection of operational road assets it possesses in India through an infrastructure investment trust (InvIT). This move has the potential to generate as much as Rs 15 to Rs 20 billion. In the previous year, Actis made the acquisition of a portfolio consisting of six roads. These comprised five hybrid annuity model (HAM) properties and one build-operate-transfer (BOT) road. This acquisition was made from Welspun Enterprises, with a total enterprise value of Rs 60 billion.

This acquisition marked Actis' entry into the roads sector in India, following its successful ventures in the renewable energy industry, where it sold two major platforms, namely Sprng Energy and Ostro Energy.

The Long Life Infrastructure Fund of Actis was responsible for acquiring the six roads. This fund specialises in investing in stable, operational assets across various infrastructure sectors, aiming to deliver substantial cash returns to investors. As per the sources mentioned earlier, Actis has submitted an application for the registration of the trust with the Indian market regulator, the Securities and Exchange Board of India (Sebi).

Sebi's approval has been awaited. Simultaneously, progress is being made on the draft prospectus of the InvIT, and they are expected to submit the draft documents within a month. Axis Capital is providing advisory services to Actis for the InvIT fundraising.

The proposed fundraising, which is anticipated to amount to approximately Rs 15 to 20 billion, will primarily be allocated to repaying or prepaying a portion of the debt associated with the road assets, according to the second source.