PNC Infratech and PNC Infra Holdings, a wholly owned subsidiary of the company have executed definitive agreements with HIT, to divest 12 of the firm’s road assets out of which 11 are National Highway hybrid annuity mode assets and 1 is State Highway BOT toll asset approximately 3,800 lane kms in the states of Uttar Pradesh, Madhya Pradesh, Karnataka and Rajasthan.

The enterprise value of the transaction is Rs 9,005.7 crore together with the earn outs and is subject to any adjustments as stipulated in the definitive agreements translating to an equity value of Rs 2,902 crore (including cash) on invested equity of Rs 1,740 crore.

PNC Infra added that the divestment is aligned with its strategic objective of recycling the capital invested in operating road assets to leverage the ambitious growth vision that has been outlined by the Government of India for this sector.

Highways Infrastructure Trust (HIT) is a SEBI registered infrastructure investment trust (InvIT). Its investment manager is Highway Concessions One Private Limited and its sponsor is Galaxy Investments II Pte. Ltd. (Sponsor), an entity affiliated with funds, vehicles and/or accounts managed and/or advised by affiliates of KKR & Co. Inc.

PNC Infratech is engaged in India's infrastructure development through the construction of highways including BOT (built, operate and transfer projects), HAM (Hybrid Annuity Model), airport runways, bridges, flyovers and power transmission projects, among others.

The company's consolidated net profit increased 12% to Rs 147.91 crore on 6.5% jump in net sales to Rs 1,911.38 crore in Q2 FY24 over Q2 FY23.