Bharat Highways InvIT Subscription Climbs to 48% After Day 2

29 Feb 2024 , 11:42 AM

The initial public offering of Bharat Highways InvIT opened for subscription on Wednesday and saw a subscription rate of 37% on day one. The ₹2,500 Crore-public issue will conclude on March 1, with the price band set at ₹98-100 per unit. Click here to subscribe the IPO.

As of day two, the issue has been subscribed 48%, with bids received for 4,91,47,200 shares out of 10,30,12,800 equity shares available for subscription.

Bharat Highways InvIT, which boasts a portfolio of seven road assets, launched the IPO with the goal of raising ₹2,500 Crore, consisting solely of a fresh issue. The infrastructure investment trust has already secured ₹825.97 Crore through an anchor book on February 27, with GR Highways Investment Manager allocating 8,25,97,350 units to anchor investors at ₹100 per unit.

The net proceeds from the public issue will be utilized by the InvIT to provide loans to the project SPVs (special purpose vehicles) for repaying their outstanding loans and for general purposes.

All of the InvIT’s assets in Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh are HAM (hybrid annuity model) projects awarded by NHAI. The revenue stream primarily comes from annuity payments from NHAI. These roads are owned and operated by the project SPVs, which are currently wholly owned by G R Infraprojects (GRIL).