Madhav Infra Projects Limited, a reputed name in India’s infrastructure and engineering sector, has taken a significant step toward strengthening its portfolio in highway development by incorporating a new Special Purpose Vehicle (SPV) — Rahatgarh Berkhedi Corridor Private Limited (RBCPL). This move is in line with the company’s strategy to execute newly awarded infrastructure projects by the National Highways Authority of India (NHAI).

Overview of the New Entity: Rahatgarh Berkhedi Corridor Private Limited

The newly formed company, Rahatgarh Berkhedi Corridor Private Limited (RBCPL), has been incorporated as a wholly owned subsidiary of Madhav Infra Projects Limited. RBCPL has an authorised share capital of ₹1,00,000, divided into 10,000 equity shares of ₹10 each. The initial capital has been fully subscribed in cash, reflecting a committed investment from the parent company.

The company has not yet commenced operations, and hence, turnover details are not applicable at this stage.

Purpose and Strategic Rationale

RBCPL has been formed with the sole intent of acting as a Special Purpose Vehicle (SPV) for executing an infrastructure project awarded by NHAI. Madhav Infra had already disclosed the receipt of this NHAI project in its regulatory filings on April 9, 2025. The SPV model ensures focused execution, efficient financial structuring, and regulatory compliance—a practice increasingly common for large-scale infrastructure works.

This formation is part of a planned execution framework, where each awarded project is managed under its own legal and operational umbrella. This structure helps companies like Madhav Infra reduce project-related risks, track performance more efficiently, and keep financial and legal liabilities compartmentalized.

Related Party Nature of the Transaction

The incorporation of RBCPL is classified as a related party transaction because Madhav Infra Projects holds 100% of the equity in the new entity. While related party transactions can sometimes raise compliance red flags, in this case, the entire shareholding ensures that the transaction is being conducted at arm’s length and under full transparency.

There is no third-party promoter involvement, and the creation of RBCPL is a natural extension of Madhav Infra’s ongoing business strategy.

Industry Classification and Relevance

RBCPL will be operating in the infrastructure and highway development industry, specifically as an execution arm for an NHAI-awarded project. This aligns perfectly with the core business of Madhav Infra, which is engaged in the construction of highways, roads, bridges, and other public infrastructure.

The company has previously undertaken similar initiatives, thereby ensuring that internal know-how, operational processes, and execution efficiency are seamlessly transferred to the new SPV.

Capital Structure and Funding Mechanism

The initial paid-up capital of the new company is ₹1,00,000, funded through cash subscription. This small capital structure is common at the incorporation stage for SPVs. Over time, as the project progresses, additional funding may be infused through debt, equity, or hybrid models depending on the project’s financial requirements.

No share swap or external valuation was involved at the initial stage, which keeps the structure simple and compliant with Indian corporate regulations.

Regulatory and Compliance Status

As of now, there are no regulatory or governmental approvals required for the incorporation of the new company. This is a standard business procedure for infrastructure firms expanding via SPVs.

The incorporation filing has already been submitted to the stock exchanges, ensuring transparency and meeting SEBI’s mandatory disclosure norms for listed entities.

Implications for Stakeholders and Investors

This development reflects Madhav Infra’s commitment to expand strategically in India’s booming infrastructure landscape. With NHAI’s aggressive push toward road development under the Bharatmala and Gati Shakti initiatives, such projects are expected to be highly lucrative and future-facing.

For investors and analysts, the formation of RBCPL signals:

• New revenue channels as project execution begins.

• An increase in order book strength.

• Efficient risk management via project-specific SPVs.

It also strengthens Madhav Infra’s profile when bidding for future NHAI or government contracts, as the company can showcase a track record of organized and regulated project handling.

Long-Term Vision Behind the Move

The formation of RBCPL is more than a statutory formality. It is a step in Madhav Infra’s long-term growth strategy aimed at:

• Streamlining project-specific operations.

• Achieving operational efficiency and legal independence for each project.

• Building a robust, scalable framework for multiple infrastructure projects simultaneously.

Moreover, as India's infrastructure spending grows, Madhav Infra is positioning itself to be a key player in this domain by being structurally prepared for fast-track execution and funding adaptability.

Conclusion

The incorporation of Rahatgarh Berkhedi Corridor Private Limited marks another strategic move by Madhav Infra Projects Limited to scale up its infrastructure execution capacity and deepen its engagement with public infrastructure development, particularly under the aegis of NHAI.

This SPV formation underscores the company's future-readiness, financial prudence, and structured growth approach, which will likely enhance its credibility and competitiveness in the Indian infrastructure space.

As projects under RBCPL commence, shareholders, investors, and industry stakeholders can expect enhanced visibility of performance, regulatory transparency, and consistent value creation through targeted infrastructure delivery.

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