Infrastructure investment trust Bharat Highways InvIT has filed draft prospectus with the capital markets regulator Sebi to mop-up Rs 20 billion through an initial public offering (IPO). Proceeds of the issue will be used to repay certain loans obtained by the Project SPVs (special purpose vehicles) and for general corporate purposes, according to the draft red herring prospectus (DRHP).

These SPV projects include Porbandar-Dwarka Expressway, Varanasi-Sangam Expressway, GR Sangli-Solapur Highway, GR Akkalkot-Solapur Highway, GR Phagwara Expressway and GR Gundugolanu-Devarapalli Highway.

Bharat Highways InvIT was set up in August 2022 to acquire 100 per cent stake in each of Project SPVs from GR Infrastructure including GDDHPL, wherein the InvIT proposes to initially acquire 49 per cent stake.

As per the draft papers, Bharat Highways InvIT (infrastructure investment trust) would issue units aggregating up to Rs 2,000 crore. The issue will be made through the book building process wherein 75 per cent of the portion size will be available to institutional investors and the remaining 25 per cent to non-institutional investors.

The sponsor to the issue, Lokesh Builders, part of the GR Group, will subscribe to 15 per cent of the total post-issue unit capital of the InvIT in order to comply with the sponsor lock-in requirements, post which the issue size will be reduced.

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