National Infrastructure Trust Files for ₹1,600 Cr IPO

27 Aug 2024 , 05:03 PM

National Infrastructure Trust, sponsored by Gawar Construction Ltd, has filed preliminary papers with the capital markets regulator for a ₹1,600 Crore IPO.

The IPO includes a fresh issue of units worth up to ₹1,200 Crore and an Offer For Sale (OFS) of units valued up to ₹400 Crore by the sponsor selling unitholder, as per the Draft Red Herring Prospectus (DRHP).

The funds raised from the IPO will be used to provide loans to project SPVs (Special Purpose Vehicles) for pre-payment of external borrowings or repayment of unsecured loans availed by the SPVs from the sponsor.

The IPO will follow the book-building process, with 75% of the issue (excluding the strategic investor portion) available to institutional investors and 25% to non-institutional investors.

Gawar Construction, the sponsor of the issue, will subscribe to 15% of the total post-issue unit capital of the InvIT to meet the sponsor lock-in requirements.

Gawar Construction specializes in road and highway projects across 19 Indian states for government and semi-government bodies, including NHAI, Ministry of Road Transport & Highways, MMRDA, and CPWD. The company has completed over 100 road construction projects since 2008.

The sponsor’s portfolio includes 26 road projects under a hybrid annuity mode (HAM) with NHAI, of which 11 are completed, including five acquired from Sadbhav Infrastructure Project Ltd, and 15 are under construction.

National Infrastructure Trust was established in September 2023 and registered with SEBI in March 2024. Its purpose is to acquire, manage, and invest in infrastructure assets across India.

The Trust plans to acquire and manage nine completed, revenue-generating Initial Portfolio Assets, totaling approximately 683.875 km, operated under concessions granted by NHAI and owned by the Project SPVs.

The revenue from operations for the SPV was ₹1,485 Crore in FY24, ₹2,033 Crore in FY23, and ₹1,908 Crore in FY22. Projected cash flows for FY25, FY26, and FY27 are estimated at ₹582 Crore, ₹662 Crore, and ₹585 Crore, respectively.

SBI Capital Markets and HDFC Bank are appointed as lead managers for the issue, while Axis Trustee Services is the sole trustee. The units will be listed on BSE and NSE.