Mumbai, May 07: Equirus Capital successfully advised KMC Group on the strategic monetisation of Calicut Expressway Private Limited, a marquee HAM road asset in Kerala owned by KMC Group, through a transaction with Actis Group. Over the last five years, Equirus Capital has executed transactions worth approximately Rs 4,500 crore in the infrastructure and transportation sector.
CEPL is the special purpose vehicle developing and operating the six-laning of the Kozhikode Bypass section on NH-66 under the Hybrid Annuity Model (“HAM”) framework awarded by NHAI. The transaction involved a comprehensive sponsor transition and refinancing exercise, combining a secondary stake sale, structured primary capital infusion and refinancing of existing debt facilities within a single integrated framework.
“The CEPL transaction was approached as a comprehensive value realization exercise, rather than a conventional asset divestment. Our objective was to monetize not only the equity investment, but also the underlying EPC economics and associated recovery mechanisms, while ensuring continuity and stability at the asset level.
“Equirus provided thoughtful structuring inputs and maintained execution discipline across a transaction that involved multiple interdependent workstreams, including refinancing, EPC realignment and stakeholder coordination. Their ability to balance commercial outcomes with transaction certainty was instrumental in achieving a satisfactory result for all parties.” said Mr. Pruthvi Kumar Reddy Mekapati, Managing Director, KMC Group.
Equirus played a central role in conceptualizing and executing the transaction, working closely with all stakeholders across structuring, investor engagement, negotiations, refinancing coordination and transaction execution.
The firm engineered a highly customized transaction framework that enabled KMC Group to unlock value not only from the underlying equity investment, but also from embedded EPC economics, escalation-linked recoveries and contingent value streams.
“This transaction reflects our ability to design and execute highly customised solutions for complex infrastructure assets. We remain committed to supporting developers in unlocking value from operating assets through innovative and disciplined advisory,” said Vijay Agarwal, Managing Director – Infrastructure, Equirus Capital.
A key highlight of the transaction was the successful integration of refinancing and sponsor transition mechanics, enabling seamless deleveraging and capital structure optimization alongside institutional ownership transfer. Equirus also assisted in structuring the revised EPC and pending works framework, facilitating clear allocation of execution responsibilities and ringfencing project-level risks for the incoming investor.
The transaction further demonstrates Equirus’ differentiated capability in navigating complex infrastructure situations involving multiple stakeholders, contingent recovery mechanisms and interdependent approvals. By aligning the interests of promoters, lenders, authorities and the incoming institutional investor, Equirus delivered a balanced and executable solution while preserving transaction certainty and long-term value realization.
With this transaction, Equirus continues to strengthen its leadership position in infrastructure advisory, particularly in the roads and transportation sector, through its ability to combine deep sector understanding, innovative structuring and disciplined execution to deliver successful outcomes in complex strategic transactions.
