The National Highways Authority of India (NHAI) has received approval from the Securities and Exchange Board of India (SEBI) for its sponsored Raajmarg Infra Investment Trust (RIIT) to operate as a public Infrastructure Investment Trust (InvIT), marking a significant milestone in the authority’s asset monetisation strategy.

According to an official release, the SEBI clearance enables NHAI to take the InvIT to public markets, unlocking the monetisation potential of operational national highway assets while creating a long-term investment avenue for retail and domestic investors. The initiative is expected to widen public participation in India’s national highway infrastructure development and provide stable yield-based investment options.

As part of the InvIT framework, NHAI had earlier incorporated Raajmarg Infra Investment Managers Pvt. Ltd. (RIIMPL) as the investment manager for RIIT. The investment manager has been set up as a collaborative venture with equity participation from leading banks and financial institutions, including State Bank of India, Punjab National Bank, National Bank for Financing Infrastructure and Development (NaBFID), Axis Bank, Bajaj Finserv Ventures Ltd., HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank and Yes Bank.

NHAI’s Member (Finance), NRVVMK Rajendra Kumar, will serve as the Managing Director and Chief Executive Officer (Additional Charge) of RIIMPL, overseeing the operations and strategic direction of the investment manager.

Commenting on the development, Santosh Kumar Yadav, Chairman, NHAI, said the SEBI approval represents a key milestone in expanding public participation in the growth of India’s national highway infrastructure. He added that the public InvIT structure will support NHAI’s asset monetisation objectives, help mobilise long-term capital and strengthen the country’s highway network.

The Raajmarg InvIT is expected to play a central role in recycling capital for new highway projects, improving financial sustainability and accelerating infrastructure development across the national highways network.

News source: DD News