NHAI InvIT to raise Rs 2,000 crore for purchasing road assets

29 Sep 2022 , 01:39 PM

In order to purchase two to three road assets from its parent company, the National Highways Authority of India (NHAI), the infrastructure investment trust (InvIT) plans to raise Rs 2,000 crore from investors, according to Livemint. InvITs are collective investment vehicles that permit direct investments from private and institutional investors in infrastructure projects and pay them  return on their investment.

To monetize its assets and obtain money to construct roadways, the NHAI established InVIT. Through the InVIT, NHAI collected Rs6,000 crore, of which CPP Investments and the Ontario Teachers’ Pension Fund each invested 25% as anchor investors. According to a source familiar with the situation, “NHAI is intending to transfer 2-3 new road assets to the InvIT and, for this, they are going to generate fresh money of Rs1,500-2,000 crore.”

Five road assets totaling 390 km in length were included in the first portfolio of InvIT and were located in Gujarat, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh, and Telangana. The investment trust’s tolling revenue for FY21 was above Rs460 crore, and its enterprise value was Rs8,011.5 crore.

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