Bharat Highways InvIT Secures ₹664.5 Crore from Sponsor Ahead of IPO Launch

28 Feb 2024 , 09:33 AM

Aadharshila Infratech, the main backer of Bharat Highways Infrastructure Investment Trust (InvIT), has injected ₹664.5 Crore into the InvIT just before its IPO launch.

The public offering is scheduled to commence on February 28 and conclude on March 1.

In a recent disclosure to stock exchanges, Bharat Highways revealed that the InvIT’s offer committee, managed by GR Highways Investment Manager, finalized the allocation of 6,64,50,000 equity shares to Aadharshila Infratech at ₹100 per share on February 26.

As per SEBI InvIT regulations, the Sponsor and Sponsor Group are mandated to collectively possess a minimum of 15% of the units post-issue, for a duration of at least three years from the listing date.

Bharat Highways InvIT aims to gather ₹2,500 Crore via its initial public offering, with ₹664.5 Crore already secured from the sponsor. This leaves the net issue size at ₹1,835.5 Crore.

Of this, 75% of the net issue size (amounting to ₹1,376.63 Crore) is earmarked for institutional investors, while the remaining 25% is reserved for non-institutional investors.

Additionally, up to 60% of the institutional investors’ portion (Rs 826 Crore) might be allocated to anchor investors. The anchor book was opened a day ahead of the IPO launch, on February 27.

The company stated in its prospectus, ‘Not more than 75% of the net issue shall be available for allocation on a proportionate basis to institutional investors, provided that the investment manager may, in consultation with the lead managers, allocate up to 60% of the institutional investor portion to anchor investors on a discretionary basis.’

The IPO price band is set at ₹98-100 per share. Investors can bid for a minimum of 150 units, with multiples of 150 units thereafter.

Proceeds from the net issue will be utilized by Bharat Highways InvIT for extending loans to the project SPVs (special purpose vehicles) to repay their existing loans and for general purposes.

ICICI Securities, Axis Capital, HDFC Bank, and IIFL Capital Services are serving as the merchant bankers to the issue.