Indus Infra Trust has signed an agreement to acquire ULCCS Kasaragod Expressway Private Limited (UKEPL) for an enterprise value of up to ₹1,000.84 crore, adding a fully operational highway asset backed by annuity payments from the National Highways Authority of India (NHAI).
According to an exchange filing dated June 8, 2026, the Investment Committee and Board of Directors of GR Highways Investment Manager Private Limited, which manages the InvIT, approved the acquisition of 100 percent equity ownership in UKEPL from Uralungal Labour Contract Co-operative Society Limited (ULCCS).
Units of Indus Infra Trust were trading at ₹125.10, marginally lower than the previous close of ₹125.15. The InvIT has a market capitalization of ₹5,541.16 crore.
Deal value and funding
The transaction carries an enterprise value of up to ₹1,000.84 crore.
The acquisition consideration, including unsecured loans, stands at up to ₹443.98 crore, subject to customary closing adjustments.
The acquisition is expected to be funded through:
- Internal resources
- Debt facilities
About the project
The asset comprises the six-lane Thalapady-Chengala section of NH-17 (new NH-66) in Kerala.
Key project details include:
- Length: Around 39 kilometres
- Programme: Bharatmala Pariyojana
- Project mode: Hybrid Annuity Mode (HAM)
- Provisional Completion of Operations Date (PCOD): August 25, 2025
The project has already become operational, eliminating construction risk.
In addition, NHAI has issued a No-Objection Certificate for the transfer of ownership.
29 annuity payments remaining
The project has a residual operational life of about 14.22 years.
It has 29 bi-annual annuity instalments receivable from NHAI.
The original bid project cost stood at ₹1,665.43 crore.
Unlike toll roads, HAM projects receive fixed payments from NHAI, providing predictable cash flows.
Expected impact on portfolio
The acquisition will add a relatively young asset to the Trust’s portfolio and extend its cash flow duration.
Management said the transaction is expected to be yield accretive for unitholders, with future cash generation anticipated to exceed the cost of capital deployed for the acquisition.
Following the transaction, the Trust is expected to remain within SEBI’s maximum leverage limit of 70 percent for InvITs.
About Indus Infra Trust
Indus Infra Trust is a SEBI-registered Infrastructure Investment Trust managed by GR Highways Investment Manager Private Limited.
The Trust focuses on owning and operating completed road assets across India, primarily under the Hybrid Annuity Mode model.
Its portfolio consists of operational highway projects aimed at generating stable cash flows and regular distributions for unitholders.
Key highlights
- Enterprise value of acquisition: Up to ₹1,000.84 crore
- Acquisition consideration: Up to ₹443.98 crore
- Asset length: 39 km
- Location: Kerala
- Residual operational life: 14.22 years
- Remaining annuity payments: 29
- Original project cost: ₹1,665.43 crore
- PCOD achieved on: August 25, 2025
TL;DR:
Indus Infra Trust will acquire ULCCS Kasaragod Expressway Private Limited for an enterprise value of up to ₹1,000.84 crore. The 39-km NHAI-backed HAM project in Kerala has 29 annuity payments remaining and more than 14 years of residual operational life.
AI summary:
- Indus Infra Trust approved the acquisition of UKEPL.
- The deal carries an enterprise value of up to ₹1,000.84 crore.
- The project is a 39-km HAM road asset in Kerala.
- It has 29 annuity payments remaining from NHAI.
- The project became operational in August 2025.
