Shapoorji Pallonji Group sells its stake in SP Jammu Udhampur Highway to NIIF

The Indian conglomerate Shapoorji Pallonji Group has announced the divestment of its entire shareholding in SP Jammu Udhampur Highway Limited to the Indian sovereign wealth fund, National Investment and Infrastructure Fund (NIIF).  

SP Jammu Udhampur is the developer for the Jammu Udhampur Highway project under concession from National Highways Authority of India (NHAI) on a Build-Operate-Transfer (Annuity) basis. The NIIF is a collaborative investment platform for international and Indian investors, anchored by the Indian government, which manages funds with investments in different asset classes and diversified sectors.

The 64.5 km long 4-lane Jammu Udhampur Highway is of strategic national interest in India and enhances connectivity to Shri Mata Vaishno Devi Shrine. Construction of the project involved complex engineering in challenging hilly terrain under extreme weather conditions and was undertaken by Afcons Infrastructure Limited, a part of SP Group and one of the largest infrastructure construction companies in India.

Sanjay Date, Chief Executive of the Transportation Business - SP Infrastructure, said: “The Shapoorji Pallonji Group is pleased to announce the sale of its entire stake in SP Jammu Udhampur Highway to NIIF. This is in line with SP Infrastructure’s strategy of creating long-term value by developing strategic infrastructure projects. It also demonstrates the Group’s versatile capabilities across the entire project life cycle involving the development, financing, operations and unlocking of value”.

Jai Mavani, Group Executive Director (Corporate Finance and M&A) added, “The Jammu Udhampur divestment is another milestone in SP Group’s continuing journey of successfully developing, value engineering and monetizing strategic projects.  This transaction also results in an effective reduction of approx. Rs 1,850 crore of consolidated Group debt besides unlocking equity”.