### **Executive Summary** Vertis Infrastructure Trust ("Vertis" or "the Trust") is a SEBI-registered Infrastructure Investment Trust (InvIT), established in December 2021 and listed on the National Stock Exchange (NSE) in August 2022. The Trust owns a rapidly expanding portfolio of operational road infrastructure assets across India, strategically diversified across key economic corridors and concession models (toll, annuity, HAM, and TOT). Under the sponsorship of Galaxy Investments II Pte. Ltd., an affiliate of KKR & Co. Inc., the Trust leverages global institutional expertise and capital to capitalize on the growing monetization of mature highway assets in India. As of November 2025, Vertis manages **INR 266 billion in Assets Under Management (AUM)**, a fivefold increase since inception, driven by a robust acquisition strategy and independent growth. The portfolio comprises **28 operational road projects** spanning approximately **8,300 lane kilometers** across nine Indian states, with a balanced mix of **70% toll-based and 30% annuity-based projects**. The weighted average residual concession life is **14.4 years**, ensuring long-term, predictable cash flows. --- ### **Portfolio & Assets** #### **Key Projects (Updated Nov 2025)** 1. **Vikravandi Highway (NH-59 / NH-47)** - **Length:** 72.9 km (4-lane flexible pavement) - **Concession:** BOT (Toll) with NHAI - **COD:** January 15, 2010 - **Concession End:** March 25, 2027 (20-year concession, +160 days extended, pending approval) - **Key Features:** One toll plaza at Vikravandi; 6 major bridges, 3 underpasses, 66 box culverts - **Traffic:** ~53,000 PCUs daily; serves pilgrimage routes and freight movement (oil, auto parts) - **FY25 Revenue Estimate:** ₹1,851 million - **Ownership:** 100% stake held by Vertis 2. **Bhatwada Toll Project (NH-47)** - **Length:** 348.40 lane-km (87.1 km rigid pavement) - **Concession:** BOT (Toll), 27 years from 2013 - **COD:** October 31, 2013 - **Toll Plaza:** Bhatwada - **PCUs:** ↑ from ~26,000 (FY24) to ~29,000 (FY25) → **9.3% growth** - **Revenue (FY25 est.):** ₹1,803 million 3. **North Telangana Expressway (TOT-16, NH-44)** - **Length:** 251.583 km - **Concession Fee:** ₹66,610 million - **Model:** Toll-Operate-Transfer (TOT), acquired in early 2025 - **Appointed Date:** February 14, 2025 - **Toll Plazas:** 5 (Pippalwada, Rolmamda, Gamjal, Bhiknoor, Manoharabad) - **Engineering Highlight:** 111.5-meter steel truss Rail Over Bridge (one of India’s largest) 4. **BETPL (NH-44, Bengaluru-Hosur)** - **Segment:** 24.365 km connecting Bengaluru and Hosur - **Role:** Enables movement between major tech and industrial hubs (Electronic City, BTM Layout) - **Acquired via sponsor transfer from GIP** 5. **Jhansi-Khajuraho Corridor (HAM Projects JK1 & JK2)** - **Total Length:** 162 km (NH-39) - **Acquisition Date:** May 2025 - **Concession:** 15 years (until FY 2036–37) - **Annuities:** JK1 (6 received out of 30), JK2 (7 received) - **Operated by:** Bundelkhand & Khajuraho Highways Pvt. Ltd. 6. **Rewari Bypass & Other HAM Projects (HG Infra Acquisition)** - **Includes:** Rewari Bypass (14.4 km), Ateli-Narnaul (RA), and three other HAM assets - **Impact:** Completes ~70 km corridor in Haryana, enhancing operational scale - **HAM Payouts:** 3–7 annuities received across projects 7. **PNC 12-Asset Portfolio (Under Acquisition)** - **Includes:** 11 HAM + 1 toll project - **Addition:** ~3,800 lane km of road assets - **Impact:** Doubles asset base; AUM projected to exceed ₹300 billion post-closure - **Funding Strategy:** Backed by INR 82.5 billion debt raise (Jun 2025), investor demand ~₹300 billion --- ### **Sponsor & Governance** - **Sponsor:** **Galaxy Investments II Pte. Ltd.**, a Singapore-incorporated entity (2021), fully owned by Galaxy Investments Pte. Ltd., which is controlled by **KKR Asia Pacific Infrastructure Holdings Pte. Ltd.**, an affiliate of **KKR & Co. Inc.** - **KKR Background:** - Founded: 1976 - AUM: **~$648 billion** (as of Mar 2025) - Infrastructure AUM: Over **$80 billion globally**, with **$9 billion+ invested in India** across 35+ deals - 100+ infrastructure professionals across 11 global offices - Active in roads, renewables, energy, telecom, and transportation - **Ownership:** Galaxy sponsors ~72% of Vertis units; additional anchor investor: **Ontario Teachers’ Pension Plan (OTPP)** - **Management Team:** Led by industry experts with >150 years of cumulative road sector experience. Mr. Hardik Shah (KKR APAC Infrastructure) provides strategic oversight. --- ### **Strategic & Operational Strengths** #### **1. Diversified Portfolio & Revenue Streams** - **Geographic Spread:** 9 Indian states, including Gujarat, Tamil Nadu, Telangana, Haryana, MP, AP — contributing to ~45% of India’s GDP - **Asset Mix:** 7 toll + 16 annuity/HAM in core portfolio; expansion adds 12 HAM assets - **Concession Diversity:** BOT-Toll, TOT, BOT-Annuity, HAM models - **Counterparty Strength:** Primarily **NHAI (Crisil AAA/Stable)** and state PWDs - **Cash Flow Stability:** Annuity projects have received 24–31 semi-annual payments without deductions; toll assets operated for 8–22 years #### **2. Full-Cycle Asset Management Platform** - **End-to-end in-house capabilities:** Acquisition, integration, digital monitoring, O&M, compliance - **Digital Systems:** - **SAP:** Financial controls - **LegaTrix:** Compliance tracking - **RAMP:** Real-time asset management - **BI Tools:** Predictive analytics & performance dashboards - **Docuvity:** Centralized document governance - **Enterprise Risk Management (ERM):** Proactive governance framework #### **3. Scalable & Efficient Operations** - **Team Growth:** From 47 (2022) to ~100 employees; **5x AUM growth with only 2x headcount increase** - **SPV Management:** 28 SPVs actively managed via integrated digital platform - **High Bid-to-Win Rate:** ~25% in private deals, demonstrating competitive advantage - **Execution Capability:** Closed 10+ HAM projects; 2 more in pipeline --- ### **Financial & Capital Structure (as of Sep 30, 2025)** | Metric | Value | |-------|-------| | **Assets Under Management (AUM)** | ₹266 billion | | **Net Debt / AUM Ratio** | 41.3% (projected ~42% post-PNC acquisition) | | **Debt Raised (FY24–25)** | ₹82.5 billion (one of largest InvIT raises) | | **Debt Composition** | ~68% repo-linked (natural hedge for HAM assets) | | **Credit Rating** | **AAA** (conservative structure) | | **Sustainability Facility** | 17-year SLF from **IFC** (International Finance Corporation) | | **Distributions to Unitholders** | ₹50.46 per unit cumulatively | | **Weighted Avg. Traffic Growth (FY19–FY25)** | 6.2% CAGR | | **Toll vs. Annuity Mix** | 70:30 | --- ### **Technology & Governance Advancement** - **Real-Time Monitoring:** Digital dashboards track traffic, toll collections, compliance, and asset health - **ERP & Analytics Transformation:** SAP + BI tools enable predictive performance modeling - **Sustainability Commitment:** SLF from IFC aligns ESG goals with long-term capital strategy - **Governance:** Transparent, SEBI-compliant InvIT structure with active independent board oversight