Indus Infra Trust has completed the acquisition of KNR Ramagiri Infra Private Ltd., the first of four highway special purpose vehicles (SPVs) it is buying from KNR Constructions Ltd.
The transaction, completed on June 11, 2026, is part of a larger deal involving four Hybrid Annuity Model (HAM) road assets with a combined enterprise value of around ₹3,482 crore.
Units of the InvIT were trading around ₹125, giving the trust a market capitalization of approximately ₹5,537 crore.
First asset acquired from KNR
Indus Infra Trust has acquired all shares of KNR Ramagiri Infra, except for a token holding of 488 shares that will be transferred later.
Three more acquisitions are yet to be completed:
- KNR Palani
- KNR Guruvayur
- KNR Ramanattukara
The share purchase agreements were signed on December 24, 2025, and have received approval from the Competition Commission of India (CCI).
The four assets together cover about 157 km across:
- Tamil Nadu
- Kerala
- Andhra Pradesh
Deal value
The transaction involves:
- Equity consideration of around ₹1,543 crore
- Enterprise value of approximately ₹3,482 crore
The enterprise value includes debt held by the road assets.
Expansion beyond sponsor assets
The acquisition marks the first major purchase by Indus Infra Trust from a third-party developer.
Until now, the InvIT had largely expanded through acquisitions from its sponsor, GR Infraprojects Ltd.
In March 2026, Indus acquired three HAM assets from GR Infraprojects, taking its portfolio to 13 roads.
The KNR transaction broadens the InvIT’s acquisition pipeline and reduces dependence on a single sponsor.
HAM model provides stable cash flows
The acquired projects operate under the Hybrid Annuity Model (HAM).
Under this structure:
- Revenue does not depend on traffic volumes.
- The National Highways Authority of India (NHAI) makes semi-annual annuity payments.
- Cash flows are linked to inflation and interest rates.
The model is designed to provide predictable income to unitholders.
Distribution history
Indus Infra Trust paid:
- ₹3.40 per unit for Q3 FY26
- ₹10 per unit during the first nine months of FY26
Total distributions since listing stand at ₹24.20 per unit.
The trust reported:
- Current ratio of 3.47
- Return on equity of 7.92 percent
Risks to monitor
The remaining three acquisitions are yet to close.
Other factors investors may watch include:
- Funding costs and leverage levels
- Interest-rate movements
- Timely annuity payments from NHAI
- The need for continued asset acquisitions to support distribution growth
About the trust
Indus Infra Trust, formerly known as Bharat Highways InvIT, is an infrastructure investment trust focused on acquiring and operating road assets.
The InvIT primarily owns highway projects and distributes cash generated from these assets to unitholders.
TL;DR:
Indus Infra Trust has completed the acquisition of KNR Ramagiri Infra, the first of four road assets being acquired from KNR Constructions under a ₹3,482 crore deal. The transaction marks the InvIT’s first major acquisition outside sponsor GR Infraprojects.
AI summary:
- Indus Infra Trust completed the acquisition of KNR Ramagiri Infra.
- The deal is part of a ₹3,482 crore transaction involving four HAM road assets.
- Three more acquisitions from KNR Constructions are pending.
- The projects cover 157 km across Tamil Nadu, Kerala and Andhra Pradesh.
- The acquisition marks the trust’s first major third-party deal.
