Actis to Sell 10% Stake in Nxt Infra Trust for Up to Rs 350 Crore
Actis Plans to Sell Stake in Nxt Infra Trust to Repay Acquisition Loans
Private equity firm Actis is planning to sell a secondary stake of around 10 percent in its infrastructure investment trust (InvIT), Nxt Infra Trust, with the stake sale expected to fetch around Rs 300-350 crore. The proceeds from the sale will be used to repay acquisition loans of around $40-45 million, availed for acquiring a portfolio of roads that are now part of Nxt Infra Trust. The payment is due at the end of 2026.
Nxt Infra Trust's existing portfolio consists of six operating roads, totalling 2,087 lane kilometres. The portfolio comprises four hybrid annuity model assets with the National Highways Authority of India as the concessioning authority, one NHAI toll road and one state HAM asset. These assets are spread across states such as Delhi, Haryana, Uttarakhand, Uttar Pradesh, and Maharashtra.
The stake sale comes at a time of high demand for InvITs among domestic institutional investors, including mutual funds, pension funds, insurance, corporate treasuries, alternative investment funds, family offices, and high net-worth individuals. This demand is driven by investor interest in yield-generating instruments, such as InvITs, which are witnessing a surge in investor interest amid heightened tensions and a sharp correction in equity markets.
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According to a recent analysis, InvIT fundraising could exceed Rs 25,000 crore this year, driven primarily by IPOs. This trend highlights a growing investor preference for relatively stable, income-generating instruments in times of elevated market volatility.
| Company | Target Fundraising Amount (Rs crore) |
|---|---|
| Brookfield | 9,000 |
| Cube Highways (I Squared Capital-backed) | 8,000 |
| Vertis (KKR-backed) | 8,000 |
| Raajmarg Infra Investment Trust | 6,000 |
| National Highways Infrastructure Trust | 3,000 |
Other players, such as Brookfield, are also lining up IPOs to raise funds. Brookfield is planning to raise around Rs 9,000 crore through a combination of an IPO and a pre-IPO round for its telecom tower InvIT. Similarly, Cube Highways and Vertis are collectively targeting more than Rs 8,000 crore through their respective IPOs.
Actis declined to comment on a Moneycontrol query, but the stake sale is expected to be completed soon, with the proceeds being used to repay the acquisition loans.
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Investor Takeaway
Actis plans to sell a 10% stake in Nxt Infra Trust, potentially raising up to Rs 350 crore.
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