CPPIB set to hike stake in IndInfravit for ₹1,005 cr

Canada’s largest pension fund Canada Pension Plan Investment Board (CPP Investments) is acquiring an additional 15.9% of the total units in IndInfravit Trust, an infrastructure investment trust (InvIT), for ₹1,005 crore.

IndInfravit, sponsored by L&T Infrastructure Development Projects Ltd (L&T IDPL), was launched in 2018 and it acquires and maintains stable brownfield road concessions in India.

The stake is being purchased through two separate deals.

“CPP Investments has acquired 7% of the units from Sadbhav Infrastructure Project Ltd (SIPL) and will acquire an additional 8.9% from L&T IDPL, which, upon completion, will increase CPP Investments’ stake in IndInfravit from 27.9% to 43.8%,” the pension fund said in a statement on Thursday.

“The combined investment amount of the two transactions is C$173 million ( ₹1,005 crore),” the pension fund added.

The transaction is expected to be completed by mid-May, subject to regulatory approvals, it said.

IndInfravit currently holds a portfolio of 13 operational road concessions across Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Telangana. The roads have been operational, on average, for around seven years.

“We have been invested in IndInfravit, the first private infrastructure investment trust of its kind in India, since its inception in 2018,” said Scott Lawrence, managing director and head of infrastructure, CPP Investments.

“Sound infrastructure is vital to supporting growth in the Indian economy. Furthering our commitment to IndInfravit reflects our ongoing commitment to investment in India, as well as our ability to support IndInfravit’s future growth opportunities and enhances our ability to deliver solid long-term risk-adjusted returns to CPP contributors and beneficiaries,” Lawrence added.

L&T IDPL will continue to act as a sponsor and its subsidiary will remain as the investment manager for IndInfravit. L&T IDPL and SIPL will continue as project managers for the portfolio, the pension fund’s statement added.