EPFO Joins NHAI InvIT as Strategic Investor
ECONOMY & POLICY

EPFO Joins NHAI InvIT as Strategic Investor

The Employee Provident Fund Organisation (EPFO) will join the public infrastructure investment trust promoted by the National Highways Authority of India (NHAI) by committing funds to acquire 16.6 per cent of the units on offer in the maiden public issue of Raajmarg Infra Investment Trust (RIIT). EPFO has committed Rs 10 billion (bn) to the offer and the NHAI as sponsor has committed to acquire 15 per cent of units. The arrangement places EPFO as a strategic investor with a stake larger than that of the sponsor.

State Bank of India Life Insurance Company Limited (SBI Life) will participate as another strategic investor by acquiring 4.3 per cent of units through an investment of Rs 2.6 bn. Managers of RIIT will invite bids from anchor investors from March 10 and such anchor bids are separate from the strategic investor commitments. Around 10 per cent of units may be set aside for retail investors and the issue aims to broaden participation across investor categories.

In all, RIIT will need to raise around Rs 95 bn to acquire five highway stretches totalling 260 km from NHAI, with about Rs 60 bn to be raised through equity and the remaining Rs 35 bn through debt. The price band for each unit has been fixed at Rs 99–100 and the minimum bid size for anchor investors is Rs 14,850 or 150 units. The managers will use the funds to complete acquisition and initial operations of the monetised assets.

The five stretches are spread across four states and total 260 km. Over the next three to five years, NHAI plans to provide a further 1,500 km of assets to RIIT which could expand the trust’s portfolio. NHAI has accepted an offer of Rs 62.2 bn from the National Highways Infrastructure Trust (NHIT) for two highway stretches, which takes funds raised through InvIT monetisation to Rs 157.2 bn.

The Employee Provident Fund Organisation (EPFO) will join the public infrastructure investment trust promoted by the National Highways Authority of India (NHAI) by committing funds to acquire 16.6 per cent of the units on offer in the maiden public issue of Raajmarg Infra Investment Trust (RIIT). EPFO has committed Rs 10 billion (bn) to the offer and the NHAI as sponsor has committed to acquire 15 per cent of units. The arrangement places EPFO as a strategic investor with a stake larger than that of the sponsor. State Bank of India Life Insurance Company Limited (SBI Life) will participate as another strategic investor by acquiring 4.3 per cent of units through an investment of Rs 2.6 bn. Managers of RIIT will invite bids from anchor investors from March 10 and such anchor bids are separate from the strategic investor commitments. Around 10 per cent of units may be set aside for retail investors and the issue aims to broaden participation across investor categories. In all, RIIT will need to raise around Rs 95 bn to acquire five highway stretches totalling 260 km from NHAI, with about Rs 60 bn to be raised through equity and the remaining Rs 35 bn through debt. The price band for each unit has been fixed at Rs 99–100 and the minimum bid size for anchor investors is Rs 14,850 or 150 units. The managers will use the funds to complete acquisition and initial operations of the monetised assets. The five stretches are spread across four states and total 260 km. Over the next three to five years, NHAI plans to provide a further 1,500 km of assets to RIIT which could expand the trust’s portfolio. NHAI has accepted an offer of Rs 62.2 bn from the National Highways Infrastructure Trust (NHIT) for two highway stretches, which takes funds raised through InvIT monetisation to Rs 157.2 bn.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code