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

26 Mar 2024 CW Team

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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Infrastructure Transport

29 Jun 2026

Third Railway Line Between Tatanagar And Adityapur Likely By September

The third railway line between Tatanagar and Adityapur is expected to be commissioned by September as work on the corridor advances, according to railway sources. The project to add a fourth line on the busy route is progressing and has been allocated Rs 50.89 billion (bn) in funding. The allocation underscores the focus on increasing capacity and easing congestion on the corridor. Relevant timetables are being adjusted to integrate the new capacity into regular operations. Construction activity has involved track laying, formation work and signalling upgrades along strategic stretches, with m..

Infrastructure Transport

29 Jun 2026

Indian Railways Approves Rs 2.7 bn Kavach Rollout in Odisha

Indian Railways has approved a Rs 2.7 billion (Rs 2.7 bn) plan to install the Kavach train collision avoidance system on 631 route kilometres in the East Coast Railway zone. The Ministry of Railways said the work will form part of a wider Kavach deployment programme that relies on an LTE based communication backbone rather than a standalone installation. The approval marks the latest stage in the steady expansion of the indigenous safety technology across the national network. The decision aims to enhance safety and reliability on corridors serving Odisha and adjoining areas. The project will ..

Infrastructure Transport

29 Jun 2026

Indian Railways Accelerates Modernisation Drive

Indian Railways utilised nearly 30 per cent of its capital expenditure budget for FY2026-27 within the first two months of the financial year, spending more than Rs 840 billion (bn) in April and May against a planned outlay of Rs 2.93 trillion (tn) for the year. The Union Budget allocated Rs 2.93 tn in total capex, comprising Rs 2.81 tn through gross budgetary support and Rs 120 bn from extra-budgetary resources. The early absorption indicates robust project execution and an aggressive infrastructure push. A significant share of the spending is being channelled towards track infrastructure, in..