Major Stake Divested in National Highways Infra Trust

Two prominent Canadian pension funds, the Ontario Teachers' Pension Plan Board and CPP Investments, have collectively sold their 10.1% unitholding in National Highways Infra Trust (NHIT). The significant divestment, valued at ₹2,905 crore, was executed through open market transactions.

Transaction Details Emerge

• The Ontario Teachers' Pension Plan Board, through its affiliate 2452991 Ontario Ltd, and CPP Investments, via its arm CPP Investment Board Private Holdings (4) Inc, offloaded a total of 19.56 crore units.
• This represented a substantial 10.1 per cent unitholding in National Highways Infra Trust.
• The disposal occurred at an average price of ₹148.53 per unit.
• The combined deal value amounted to ₹2,905.24 crore.
• Singapore-based Nitro Asia Holdings II Pte Ltd was the acquirer of these units.

Market Reaction

• Following the announcement of the large block deal, the units of National Highways Infra Trust experienced a positive movement.
• The units rose by 1.53 per cent to close at ₹149.75 per unit on the National Stock Exchange (NSE).

Global Investors Involved

• CPP Investments, a Canadian government-owned entity, is recognized as one of the world's largest investors in private equity, managing approximately $777.5 billion in assets under management as of September 30, 2025.
• The Ontario Teachers' Pension Plan Board is a fully funded defined benefit pension plan with net assets totaling $266.3 billion as of December 31, 2024.

About National Highways Infra Trust

• National Highways Infra Trust (NHIT) is an infrastructure investment trust (InvIT) focused on toll-operate-transfer (TOT) road projects.
• InvITs are collective investment vehicles, similar to mutual funds, that own, manage, and invest in infrastructure assets, allowing them to raise capital from the public.

Impact

• This large divestment by major global institutional investors could influence investor sentiment towards NHIT and other Indian infrastructure investment trusts. It signals a shift in holdings among key long-term players.
• The transaction also highlights the significant capital flows within the Indian infrastructure sector.
• Impact Rating: 7/10

Difficult Terms Explained

• Divested: Sold off or disposed of an asset or holding.
• Unitholding: The ownership stake held by an investor in a trust, represented by units.
• Open Market Transactions: Trades executed on a stock exchange during regular trading hours, typically between willing buyers and sellers.
• Block Deal Data: Information on large volume trades, usually involving institutional investors, executed away from the general order book or in large quantities.
• Infrastructure Investment Trust (InvIT): An investment vehicle that owns income-generating infrastructure assets, allowing investors to participate in infrastructure development.