Capital Infra Trust InvIT's IPO to open on Jan 7, plans future acquisitions

For its initial portfolio, the trust will acquire, manage, and invest in nine completed and revenue-generating initial portfolio assets, aggregating approximately 682.43 km

Capital Infra Trust InvIT, earlier known as National Infrastructure Trust, will be eyeing more road assets acquisitions in the future, according to senior executives, including third-party projects.

 

The Trust looks to diversify its portfolio beyond hybrid annuity model (HAM) assets, considering the investors’ interests, said Manish Satnaliwala, chief executive officer (CEO) for the Trust.

 

With its presence in seven states, it aims to expand its portfolio geographically.

 

For further acquisitions, Satnaliwala said there’s still some “headroom” left to acquire a few assets via debt.

 

“We may hit the market again by the end of this year or next year,” he added. The Trust's initial public offering (IPO) issue is set to open on January 7.

 

For its initial portfolio, the trust will acquire, manage, and invest in the nine completed and revenue-generating initial portfolio assets, aggregating to approximately 682.4 km, operated and maintained pursuant to concessions granted by the National Highways Authority of India (NHAI) and are owned and operated by the respective project special purpose vehicles.

 

These roads are located in Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh, and Karnataka.

 

All the initial portfolio assets are operating with a HAM, with an average residual concession life of 11.7 years as of September 30, 2024. The aggregate bid project cost (BPC) of the assets is Rs 9,153.3 crore, with annuities being paid every six months.

 

The Trust has signed a right of first offer agreement with its sponsor Gawar Construction Limited. 

 

Under the agreement, the GCL shall provide the trust with a right of first offer in relation to its 17 additional HAM road assets as well as road assets that it may get awarded or acquire in the future. The above-mentioned additional assets have a BPC of about Rs 17,788 crore.

 

 The price band for the issue opening on Tuesday is Rs 99-100 per unit. 

 

The InvIT filed its offer document on December 27, 2024, for the public issue of its units aggregating up to Rs 1,578 crore. Of the total issue, Rs 1,077 crore is a fresh issue of units, while offer-for-sale units are worth Rs 501 crore.

 

The InvIT’s units are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange. The bids are scheduled to close on January 9.