Infrastructure investment trust Bharat Highways InvIT revealed its plans to initiate its initial public offering (IPO) worth Rs 2,500 crore on February 28. The IPO, marking the InvIT’s debut in the public market, will run until March 1, with a price range of Rs 98-100 per unit, as disclosed by Bharat Highways InvIT in an official statement.
The funds raised from the IPO will be directed towards extending loans to project SPVs (special purpose vehicles) for the repayment of their existing loans. Bharat Highways InvIT functions as an infrastructure investment trust with the primary objective of acquiring, managing, and investing in a diversified portfolio of infrastructure assets across India, operating under Sebi’s InvIT regulations.
The initial portfolio of Bharat Highways InvIT comprises seven road assets operating on the hybrid annuity model (HAM) in various states including Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh, covering approximately 497.292 km of constructed and operational roads. Additionally, the InvIT has secured an agreement with G R Infraprojects (GRIL), granting it the first right of offer to acquire certain road assets.
The IPO allocation reserves 75 percent for qualified institutional bidders (QIBs) and 25 percent for non-institutional investors (NIIs). Interested investors can bid for a minimum of 150 units in one lot, with multiples of 150 units thereafter.
The book running lead managers for the IPO are ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities.
