NHAI-backed Raajmarg Infra InvIT garners Rs 1,728 cr from anchor investors
This comes ahead of InvIT’s 6,000-crore initial public offering, which opened for subscription on March 11. This will be the first time that NHAI will open its asset monetization program to retail investors.
According to the circular uploaded on BSE’s website, a total of 17.28 crore units have been allocated to anchor investors at a price of Rs 100 per unit, amounting to Rs 1,728 crore.
Anchor investors include pension funds, insurance companies, mutual funds, banks, charitable funds and alternative investment funds.
Other notable investors included Aditya Birla Sun Life Insurance, Tata AIG General Insurance, Kotak Mahindra Bank and various NPS Trust schemes managed by SBI, UTI, ICICI Prudential and Kotak Pension Funds.
Mutual funds such as HDFC MF, Nippon India MF, Axis MF, Aditya Birla Sun Life MF, DSP, Quant, WhiteOak Capital and Edelweiss also participated in the Anchor book. Investments were also received from relief funds of Indian Oil Corporation, Sebi employees and Maharashtra State Electricity Board.
InvIT’s IPO price has been fixed between Rs 99 and Rs 100 per unit. The thread will end on March 13. The initiative marks an important step towards increasing public participation in the growth story of the National Highway infrastructure.
The public InvIT aims to unlock the monetization potential of National Highway assets while creating a high-quality, long-term investment vehicle targeted primarily at individual and domestic investors.
According to Red Herring Prospectus (RHP), Raajmarg Infra Investment Trust’s IPO size is up to Rs 6,000 crore. This was an increase from the R5,700 billion planned in January when draft documents were submitted.
InvIT is proposing an initial portfolio of five toll roads in Jharkhand, Andhra Pradesh, Tamil Nadu and Karnataka, operating under Toll-Operate-Transfer model based on concessions granted by NHAI to the project SPV.
The toll roads comprise five toll roads spanning over 260 km, forming part of the Golden Quadrangle project.
Earlier, NHAI had brought on board Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL) as the investment manager of Raajmarg Infra Investment Trust.
RIIMPL is a collaborative initiative with equity participation from leading banks and financial institutions, including State Bank of India, Punjab National Bank, NaBFID, Axis Bank, Bajaj Finserv Ventures Ltd, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank and YES Bank.
InvIT said 75 percent of the offer size is reserved for qualified institutional buyers, including anchor investors, while the remaining 25 percent is reserved for non-institutional investors.
Raajmarg Infra Investment Trust will enter the stock market on March 24.
