Bharat Highways Infrastructure Investment Trust (InvIT) has announced its groundbreaking initial public offering (IPO), positioning itself as a significant player in India’s investment landscape for 2024. With an enticing price band of ₹98 to ₹100 per equity share, this IPO is creating ripples in the market. The IPO is set to open for subscription on February 28 and conclude on March 1.
Bharat Highways InvIT, sponsored by Aadharshila Infratech Pvt, is offering equity shares worth ₹2,500 crore through the IPO. The minimum lot size for bidders, excluding anchor investors, is set at 150 shares, with a minimum investment of ₹14,700 for retail investors. The IPO follows the book-building process, with institutional investors eligible to bid for a maximum of 75% of the net issue. Non-institutional investors are allocated not less than 25% of the net issue.
Once successful, the units will be listed on the National Stock Exchange of India (NSE) Ltd and the BSE Ltd. Key players like ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities have been appointed as the book-running lead managers, ensuring a seamless IPO process. KFin Technologies has been appointed as the registrar of the IPO.
Bharat Highways InvIT plans to utilize the IPO proceeds strategically. A significant portion will be directed towards extending loans to Project Special Purpose Vehicles (SPVs) for the repayment of outstanding loans, inclusive of interest and prepayment penalties. Additionally, a part of the proceeds will be allocated to general corporate purposes.
As an infrastructure investment trust, Bharat Highways InvIT’s primary objective is to acquire, manage, and invest in a diversified portfolio of infrastructure assets across India. The sponsor, Aadharshila Infratech Pvt Ltd, specializes in testing services in the transportation engineering sector, emphasizing NSV survey, FWD survey, pavement design, and more.
The InvIT’s initial portfolio comprises seven road assets, operating on the Hybrid Annuity Model (HAM), spread across Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These roads are operated and maintained pursuant to concession rights granted by the National Highways Authority of India (NHAI). The InvIT has signed a Right of First Offer (ROFO) Agreement with GR Infraprojects Ltd (GRIL) to acquire additional assets, demonstrating its growth strategy.
The SPV Group’s total income for the six-month period ended September 30, 2023, and the Financial Year ended March 31, 2023, stood at ₹388.540 crore and ₹1,537.470 crore, respectively. This robust financial performance adds to the attractiveness of Bharat Highways InvIT as an investment opportunity.
Bharat Highways InvIT’s IPO marks a significant milestone in India’s financial landscape for 2024. With a robust portfolio, strategic utilization of proceeds, and a commitment to infrastructure development, the InvIT offers investors a unique opportunity to participate in the country’s growth story.
