Bharat Highways Invit's Rs 25 bn IPO launches on Feb 28

The opening date for subscription to the Bharat Highways InvIT IPO is set for February 28, with the closing date on March 1. The company aims to raise Rs 25 billion, marking the highest fundraising in 2024 so far. The book-running lead managers for the issue include ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities. The infra-investment trust had submitted draft papers for the IPO in December of the previous year and obtained approval earlier this year. The net proceeds from the IPO will be utilised by the company to extend loans to the Project SPVs (special purpose vehicles) for the repayment of outstanding loans, which include any accrued interest and prepayment penalty. The remaining funds will be allocated for general corporate purposes. As of February 1, 2024, the Project SPVs had an outstanding external borrowing of Rs 35.68 billion. Prior to the IPO, GR Infraprojects engaged in a share purchase agreement (SPA) with Bharat Highways InvIT. This agreement involved the complete divestment of its investment in the equity shares of seven wholly-owned subsidiary companies. The names of these subsidiaries are GR Phagwara Expressway, Porbandar Dwarka Expressway, Varanasi Sangam Expressway, GR Akkalkot Solapur Highway, GR Sangli Solapur Highway, GR Gundugolanu Devarapalli Highway, and GR Dwarka Devariya Highway. Bharat Highways InvIT operates as an infrastructure investment trust with the purpose of acquiring, managing, and investing in a portfolio of infrastructure assets in India. It conducts its activities as per the SEBI InvIT Regulations.