Capital Infra Trust, earlier known as National Infrastructure Trust, which is raising Rs 1,578 crore through initial public offer, will open its IPO for subscription by institutional and non-institutional investors on January 7.
The issue will close on January 9.
Gawar Construction sponsored Capital Infra Trust which focuses on strategic investments in infrastructure projects, primarily national highways, plans to raise Rs 1,578 crore through IPO, which comprises of fresh issuance of Rs 1,077 crore, and an offer-for-sale of Rs 501 crore by the sponsor selling unitholder.
The trust has allocated up to 75 per cent of the offer size for institutional investors and up to 25 per cent for non-institutional investors. The allotment of units to investors will be finalised by January 14, with trading in Capital Infra Trust units set to begin on the stock exchanges from January 17.
The InvIT’s primary objective is to acquire, manage, and invest in nine completed, revenue-generating assets spanning approximately 682.43 km. These assets are owned and operated by project SPVs (special purpose vehicles) across seven states in India and have a weighted average residual concession life of 11.7 years as of September 2024.
Beyond the initial portfolio, the Trust, through its investment manager (Gawar Investment Manager), will have the right to acquire additional projects under the Right of First Offer agreement with its sponsor.
The proceeds of the fresh issue will be utilised towards providing loans to the project SPVs for repaying debt availed from the financial lenders and the sponsor.
The sponsor will monetise future annuity payments (including interest) and operation and maintenance income from the NHAI by transferring the initial portfolio assets to the Trust. The Trust’s revenue streams include interest income on financial assets from NHAI, revenue from road operations and maintenance, construction services, and operating revenues.
For fiscal 2024, revenue from the initial portfolio assets was Rs 1,485 crore, down from Rs 2,033 crore in the previous fiscal, with profit dropping to Rs 125.8 crore from Rs 497.2 crore in fiscal 2023. For the six months ending September 2024, revenue stood at Rs 705.4 crore, with a profit of Rs 115.4 crore.
Axis Trustee Services has been appointed as the sole Trustee of the Trust. The book running lead managers handling the Capital Infra Trust IPO are SBI Capital Markets and HDFC Bank.
