Capital Infra Trust InvIT IPO gets 39% subscription on first day of offer

The initial public offering (IPO) of Capital Infra Trust, an infrastructure investment trust (InvIT), received 39 per cent subscription on the first day of bidding on Tuesday.

The issue received bids for 3,46,59,300 units against the offered 8,83,83,750 units, according to data available on the stock exchanges. 

Other investors portion received 87 per cent subscription.

Capital Infra Trust, sponsored by Gawar Construction, has garnered Rs 703 crore from anchor investors.

The issue, with a price band of Rs 99-100 per unit, will conclude on January 9.

The company's IPO is a combination of a fresh issue of units aggregating up to Rs 1,077 crore and an offer for sale (OFS) of units valued up to Rs 501 crore by the sponsor selling unitholder Gawar Construction Ltd. This takes the total size to Rs 1,578 crore.

The public issue of Capital Infra Trust (formerly National Infrastructure Trust) has become the first InvIT IPO of 2025.

According to its prospectus, the proceeds from the fresh issue will be used to provide loans to the project special purpose vehicles (SPVs) to clear external borrowings.

The funds will also be used to give loans to project SPVs for debt repayment of unsecured loans from the sponsor.

The sponsor, Gawar Construction, is engaged in the construction of road and highway projects across 19 states in India for various government/semi-government bodies and statutory authorities, including the NHAI, Ministry of Road Transport and Highway, Mumbai Metropolitan Regional Development Authority, and Central Public Works Department.

Established in September 2023, Capital Infra Trust was set up to carry out activities as an InvIT and make investments as per Sebi's InvIT norms.

The units of the company will be listed on the BSE and the NSE.