Raajmarg InvIT to bolster NHAI asset monetisation with ₹6,000 cr IPO

Raajmarg InvIT's ₹6,000 crore IPO seeks to help NHAI meet its expanded asset monetisation targets, backed by a five-asset portfolio and a ROFO pipeline of 1,500 km of roads

Raajmarg Infra Investment Trust (RIIT), an infrastructure investment trust (InvIT) sponsored by the National Highways Authority of India (NHAI), is aiming to support the authority’s asset monetisation targets amid its ₹6,000 crore initial public offering (IPO).

 

The IPO will open on Wednesday, 11 March 2026, and close on Friday, 13 March 2026. The price band has been fixed from ₹99 to ₹100 per unit.

 

“As presented in the Budget, we are now embarking on the second phase of the monetisation plan, which has set a more ambitious target. To meet these targets and deepen the financial markets, the NHAI and the government have launched this initiative,” NRVVMK Rajendra Kumar, member finance, NHAI and managing director and chief executive officer, Raajmarg Infra Investment Managers, said. 

“The objective is to provide access to a wider set of investors and further broaden and deepen the InvIT landscape, which is a regulated and highly active financial instrument,” Kumar added.

 

Raajmarg’s current portfolio consists of five road assets with a total length of 260.19 kilometres across Karnataka, Tamil Nadu, Andhra Pradesh, and Jharkhand. The portfolio is valued at ₹9,500 crore, while the InvIT’s enterprise value is estimated to be around ₹9,800 crore.

 

Raajmarg has a Right of First Offer (ROFO) agreement with its sponsor, NHAI, under which the authority will be transferring 1,500 kilometres of road assets to the InvIT over the next three to five years.

 

The InvIT will utilise the proceeds from the issue for the infusion of debt and equity into the project special purpose vehicles (SPVs), which shall be utilised for the payment of concession value of the InvIT assets to NHAI, and for general purposes.

 

NHAI will subscribe to 15 per cent of the total issue as a sponsor commitment. The InvIT has also received an investment commitment of ₹1,260 crore from strategic investors, including the Employees’ Provident Fund Organisation (EPFO) and SBI Life Insurance Company.

 

According to the valuation report of the InvIT’s five road assets, their combined revenue is projected to grow at a compound annual growth rate (CAGR) of 8.1 per cent from ₹925.8 crore in 2026–27 to ₹2,738.7 crore in 2040–41. The earnings before interest, taxes, depreciation, and amortisation (Ebitda) are estimated to grow from ₹876.6 crore in FY27 to ₹2,442.1 crore.

 

Kumar, while speaking in the context of the current market conditions, said, “We would like to offer a long-term instrument under the InvIT framework to the investors under a highly regulated and stable environment. That is what we are offering under this environment.”

 

Additionally, NHAI has also sponsored a private InvIT — National Highways Infra Trust (NHIT). Monetisation of operational road assets through two key modes — InvIT and toll-operate-transfer (TOT) — has been the authority’s agenda over the past few years. It has been able to monetise assets worth ₹77,900 crore between FY22 and FY25.

 

Rating agency Icra has projected road monetisation at ₹35,000–40,000 crore in FY26 if the assets identified by the NHAI are monetised in a timely manner, based on the median valuation multiple of 0.62 times seen across the 10 awarded TOT bundles over the last three years.

 

According to the Bharat InvITs Association, total assets under management of listed InvITs (public and private) stood at ₹7 trillion as of September 2025 and are expected to reach ₹21 trillion by 2030. AUM has grown over 1,000 per cent in the last five years, with a 16.5 per cent increase in the past year alone.

 

InvITs have distributed over ₹83,770 crore since inception, including ₹10,000 crore in the first two quarters of FY26 and ₹5,565 crore in the third quarter.