NHAI gets Sebi nod for its maiden InvIT, seeks to raise Rs 5,000-cr

The National Highways Authority of India (NHAI) has received the approval of the markets regulator to launch its maiden infrastructure investment trust to raise Rs 5,100 crore.

The Securities and Exchange Board of India (Sebi) last week approved the NHAI InvIT, expected to be launched in a month’s time.

In the future, the authority plans to offer 19 projects worth Rs 35,000 crore under the InvIT model.

NHAI InvIT is a platform to monetise roads over the next 3-5 years, the official said, adding that the initial set of roads are part of national corridors and provide excellent long-term prospects.

The trust is being set up as a private listed InvIT to attract large institutional investors. It is an investment trust that works like a mutual fund and is regulated by Sebi.

In such a model, assets are placed in an InvIT where investors put in money and income generated from such assets is paid as dividend.

NHAI’s InvIT became a casualty of the Covid-19 crisis after a nationwide lockdown was imposed on March 25, 2020. It was earlier set to launch its first InvIT in May 2020. In December 2019, the Union Cabinet approved the proposal of the Ministry of Road Transport and Highways to authorise NHAI to set up InvITs to monetise national highways that have a toll collection track record of at least one year.