NHAI Finalises Record InvIT Monetisation Exceeding Rs 180 Billion
ROADS & HIGHWAYS

NHAI Finalises Record InvIT Monetisation Exceeding Rs 180 Billion

National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT) set up by NHAI in 2020 to support the Government of India's monetisation programme has successfully concluded fourth round of fund-raising at an Enterprise Value of about Rs 183.80 billion, making it the largest monetisation transaction in the history of Indian roads sector. With completion of this round, the total realised value across the four rounds stands at over Rs 460 billion.

In this round, NHIT has successfully raised ~Rs 83.40 billion in unit capital from marquee domestic and international investors along with Rs 100.40 billion in debt from domestic lenders. These funds will be used for the acquisition of National Highway stretches viz. Anakapalle – Narsannapeta, Gundugolanu – Kovvuru & Chittoor – Mallavaram stretches in Andhra Pradesh, Bareilly – Sitapur & Muzaffarnagar – Haridwar stretches in UP/ Uttarakhand, Gandhidham – Mundra stretch in Gujarat and Raipur – Bilaspur stretch in Chhattisgarh, at a concession value of Rs 177.38 billion (including premium of Rs 970 million). The investors subscribed to the units through a book-building process at a cut-off price of Rs 133.50 per unit, reflecting a premium over the Dec 31, 2024 NAV of Rs.131.94 per unit.

The issue attracted strong demand from both existing and new investors. Several domestic pension/provident funds, viz., EPFO, L&T PF, Rajasthan Rajya Vidyut Karamchari PF, Indian Oil Corporation PF; insurance companies including Axis Max Life Insurance; banks/financial institutions including NaBFID, Axis Bank, IndusInd Bank; and mutual/ investment funds like Nippon India, Baroda BNP Paribas, Nuvama and White Oak Capital participated in the issue. In addition, NHIT’s existing foreign investors, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board participated in the book building to their maximum limit.

A significant development in this round is subscription by the Employees’ Provident Fund Organisation (EPFO) of Rs 20.35 billion. This is the first ever investment by EPFO in an InvIT. Also, NHAI subscribed to its share of ~15 per cent of the units at the same price.

With completion of this round, NHIT will hold a diversified portfolio of 26 operating toll roads (41 toll plazas) with an aggregate length of 2,345 km spread across 12 states with concession periods ranging between 20 to 30 years.

News source: PIB

National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT) set up by NHAI in 2020 to support the Government of India's monetisation programme has successfully concluded fourth round of fund-raising at an Enterprise Value of about Rs 183.80 billion, making it the largest monetisation transaction in the history of Indian roads sector. With completion of this round, the total realised value across the four rounds stands at over Rs 460 billion. In this round, NHIT has successfully raised ~Rs 83.40 billion in unit capital from marquee domestic and international investors along with Rs 100.40 billion in debt from domestic lenders. These funds will be used for the acquisition of National Highway stretches viz. Anakapalle – Narsannapeta, Gundugolanu – Kovvuru & Chittoor – Mallavaram stretches in Andhra Pradesh, Bareilly – Sitapur & Muzaffarnagar – Haridwar stretches in UP/ Uttarakhand, Gandhidham – Mundra stretch in Gujarat and Raipur – Bilaspur stretch in Chhattisgarh, at a concession value of Rs 177.38 billion (including premium of Rs 970 million). The investors subscribed to the units through a book-building process at a cut-off price of Rs 133.50 per unit, reflecting a premium over the Dec 31, 2024 NAV of Rs.131.94 per unit. The issue attracted strong demand from both existing and new investors. Several domestic pension/provident funds, viz., EPFO, L&T PF, Rajasthan Rajya Vidyut Karamchari PF, Indian Oil Corporation PF; insurance companies including Axis Max Life Insurance; banks/financial institutions including NaBFID, Axis Bank, IndusInd Bank; and mutual/ investment funds like Nippon India, Baroda BNP Paribas, Nuvama and White Oak Capital participated in the issue. In addition, NHIT’s existing foreign investors, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board participated in the book building to their maximum limit. A significant development in this round is subscription by the Employees’ Provident Fund Organisation (EPFO) of Rs 20.35 billion. This is the first ever investment by EPFO in an InvIT. Also, NHAI subscribed to its share of ~15 per cent of the units at the same price. With completion of this round, NHIT will hold a diversified portfolio of 26 operating toll roads (41 toll plazas) with an aggregate length of 2,345 km spread across 12 states with concession periods ranging between 20 to 30 years. News source: PIB

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