NHAI raises Rs 1,217 crore through InvIT, adds three road projects

National Highways Infra Trust, the infrastructure investment trust (InvIT) of National Highways Authority of India (NHAI), has raised Rs 1,217 crore from investors in its follow-on offer, the ministry of road transport and highways (MoRTH) announced on Monday.

The issue was fully subscribed before closing, with NHAI’s own share of investment being Rs 213 crore, MoRTH said. While the ministry had been planning to expand its investor pool, there is currently no information available on which institutional investors have been involved in the latest issue.

The latest issue involves the addition of three toll roads to the InvIT’s current portfolio — the Agra Bypass stretch in Uttar Pradesh (32.8 km), Shivpuri–Jhansi stretch in Madhya Pradesh (75.3 km), and Borkhedi–Kelapur stretch in Maharashtra (138.15 km).

These assets have an enterprise value of approximately Rs 3500 crore, a person aware of the development said. The InvIT also filed a draft prospectus to raise Rs 1500 crore through the issue of non-convertible debentures with the Securities and Exchange Board of India (Sebi).

The InvIT will raise the rest of the enterprise value through long-term debt of Rs 850 crore. Earlier, the highway authority’s trust had also raised Rs 2,000 crore after the issuance of the first round of InvITs, which was financed by State Bank of India, Bank of Maharashtra, and Axis Bank.

Last year, the InvIT saw investments from CPP Investments and Ontario Teachers’ Pension Fund at an enterprise value of Rs 8011 crore. InvITs are instruments that allow investors to directly benefit from healthy revenue-generating infrastructure assets such as toll roads.

Union minister Nitin Gadkari has laid down a plan to open the NHAI InvIT to retail investors, with an assured return of 7-8 per cent per annum. Currently, MoRTH is deliberating with SEBI on the requisite approvals and change in structures necessary to relax the investment rules and allow a public listing. The minister had earlier said that there will be a cap of Rs 10 lakh per investor.