NHIT Raises Record Capital for NHAI Through 'InvIT Round-3'
ROADS & HIGHWAYS

NHIT Raises Record Capital for NHAI Through 'InvIT Round-3'

National Highways NHAI's Trust (NHIT), an infrastructure investment trust sponsored by the National Highways Authority of India (NHAI), has achieved a significant milestone by successfully concluding fund-r "isin "NHIT'sgh' InvIT Round-3' for national highway stretches spanning a combined len "th o" 889km, valued at over Rs 160 billion. This transaction represents the largest monetisation effort by NHAI and stands as one of the most substantial transactions in the history of the Indian road sector.
The issuance of the letter of acceptance (LOA) to secure the highest-ever concession value through 'InvIT Round-3' was initiated in February 2024.
During the third round of monetisation, NHIT garnered unit capital of approximately Rs 72.72 billion from prominent domestic and international investors, along with debt amounting to around Rs 90 billion from Indian lenders. This capital infusion was aimed at funding the acquisition of national highway stretches, with a base concession fee of approximately Rs 156.25 billion and additional concessional fees of Rs 750 million, according to the Ministry of Road Transport & Highways (MoRTH).
Investors subscribed to the units through a book-building process at a cut-off price of Rs 124.14 per unit, reflecting a premium over the current NAV of Rs 122.86 per unit.
Strong demand for the units was observed from both existing and new investors, including foreign pension funds such as Canada Pension Plan Investment Board and Ontario Teachers? Pension Plan Board, domestic pension/provident funds, insurance companies, mutual funds, banks, and others. NHAI also subscribed to approximately 15% of the units at the same price, as per MoRTH.
With the completion of the third round of monetisation, the total realised value of all three rounds of InvIT stands at Rs 261.25 billion NHIT now holds a diversified portfolio comprising 15 operating toll roads with a combined length of about 1,525km spread across nine states.
Established in 2021 to support the Government of India's national monetisation pipeline, NHIT has emerged as a key player in the InvIT space, facilitating the channelisation of financial capital into the development of India's road sector, stated Anurag Jain, Secretary of the Ministry of Road Transport & Highways.
Santosh Kumar Yadav, Chairman of NHAI, expressed satisfaction with NHIT's achievement in completing the largest monetisation of roads for NHAI and expects it to continue playing a significant role in the sector's monetisation and development.
Suresh Goyal, Managing Director of NHIT's Investment Manager, expressed gratitude to existing investors for their continued support and welcomed new partners onboard to strengthen NHIT and support NHAI's endeavors in the road sector development.
Since November 2021, NHIT has cumulatively raised around Rs 120 billion through the first two rounds of monetisation to acquire eight operating road assets spanning 636km from NHAI. Units of NHIT were historically issued at a price of Rs 101 in November 2021 and listed on both BSE and NSE.         

National Highways NHAI's Trust (NHIT), an infrastructure investment trust sponsored by the National Highways Authority of India (NHAI), has achieved a significant milestone by successfully concluding fund-r isin NHIT'sgh' InvIT Round-3' for national highway stretches spanning a combined len th o 889km, valued at over Rs 160 billion. This transaction represents the largest monetisation effort by NHAI and stands as one of the most substantial transactions in the history of the Indian road sector.The issuance of the letter of acceptance (LOA) to secure the highest-ever concession value through 'InvIT Round-3' was initiated in February 2024.During the third round of monetisation, NHIT garnered unit capital of approximately Rs 72.72 billion from prominent domestic and international investors, along with debt amounting to around Rs 90 billion from Indian lenders. This capital infusion was aimed at funding the acquisition of national highway stretches, with a base concession fee of approximately Rs 156.25 billion and additional concessional fees of Rs 750 million, according to the Ministry of Road Transport & Highways (MoRTH).Investors subscribed to the units through a book-building process at a cut-off price of Rs 124.14 per unit, reflecting a premium over the current NAV of Rs 122.86 per unit.Strong demand for the units was observed from both existing and new investors, including foreign pension funds such as Canada Pension Plan Investment Board and Ontario Teachers? Pension Plan Board, domestic pension/provident funds, insurance companies, mutual funds, banks, and others. NHAI also subscribed to approximately 15% of the units at the same price, as per MoRTH.With the completion of the third round of monetisation, the total realised value of all three rounds of InvIT stands at Rs 261.25 billion NHIT now holds a diversified portfolio comprising 15 operating toll roads with a combined length of about 1,525km spread across nine states.Established in 2021 to support the Government of India's national monetisation pipeline, NHIT has emerged as a key player in the InvIT space, facilitating the channelisation of financial capital into the development of India's road sector, stated Anurag Jain, Secretary of the Ministry of Road Transport & Highways.Santosh Kumar Yadav, Chairman of NHAI, expressed satisfaction with NHIT's achievement in completing the largest monetisation of roads for NHAI and expects it to continue playing a significant role in the sector's monetisation and development.Suresh Goyal, Managing Director of NHIT's Investment Manager, expressed gratitude to existing investors for their continued support and welcomed new partners onboard to strengthen NHIT and support NHAI's endeavors in the road sector development.Since November 2021, NHIT has cumulatively raised around Rs 120 billion through the first two rounds of monetisation to acquire eight operating road assets spanning 636km from NHAI. Units of NHIT were historically issued at a price of Rs 101 in November 2021 and listed on both BSE and NSE.         

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