National Infrastructure Trust Files DRHP To Raise Rs 1,600 Crore

National Infrastructure Trust (NIT), according to the reports, has just filed its Draft Red Herring Prospectus (DRHP) with SEBI, with a target to raise a hefty Rs 1,600 crore through its upcoming IPO. Backed by Gawar Construction Ltd (GCL), this infrastructure investment trust is looking to make an impact in the market.

What’s on Offer?

The IPO will feature a fresh issue of units worth up to Rs.1,200 crore and an offer for sale of up to Rs.400 crore by the sponsor-selling unitholder. To meet sponsor lock-in requirements, GCL plans to snap up 15% of the total post-issue unit capital. The offering will be managed via a book-building process, with 75% of the units going to institutional investors (excluding strategic investors) and the remaining 25% up to be held off by non-institutional investors.

Axis Trustee Services Ltd and Gawar Investment Manager Pvt Ltd will handle the trust and investment management for the IPO, while SBI Capital Markets and HDFC Bank will steer the offering as lead managers.

Investment Focus & Financials

NIT was set up on September 25, 2023, and registered with SEBI on March 7, 2024. It’s set to invest in and manage infrastructure assets across India. The initial portfolio includes nine completed, revenue-generating road assets, covering around 683.875 kilometers across various states like Haryana, Rajasthan, Bihar, Himachal Pradesh, Madhya Pradesh, Karnataka, and Uttarakhand.

For FY24, the revenue from operations was Rs.1,485 crore, down from Rs.2,033 crore in FY23 and Rs.1,908 crore in FY22. Projected cash flows are estimated at Rs.582 crore for FY25, Rs.662 crore for FY26, and Rs.585 crore for FY27. By the end of its concession period, the portfolio is expected to rake in Rs.6,020.10 crore in annuities, with Rs.464.53 crore already received as of June 30, 2024.

Conclusion: Looking Ahead, the Indian government has set aside a massive Rs.111 lakh crore (US$ 1.4 trillion) for infrastructure under the National Infrastructure Pipeline for FY25. With 202 national highway projects valued at Rs.79,789 crore (US$ 9.59 billion) in progress, NIT’s IPO comes at a promising time.

Want to stay ahead in the market? Get a sneak peek at our Upcoming IPO and invest early. Take the next step in your financial journey!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.