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The initial public offering (IPO) of Raajmarg Infra Investment Trust (RIIT), sponsored by the National Highways Authority of India (NHAI), was subscribed 16% on the first day of bidding. The INR 6,000 crore InvIT issue received bids for 3.39 crore units against 21.33 crore units on offer, according to stock exchange data. The institutional investor category was subscribed 20%, while the portion reserved for other investors saw 11% subscription. A day earlier, the InvIT raised INR 1,728 crore from anchor investors including Life Insurance Corporation of India, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance and Bajaj Life Insurance. The issue is priced at INR 99-100 per unit and will remain open until March 13. The InvIT is backed by an initial portfolio of five toll road assets spanning more than 260 km across four states.
The initial public offering of Raajmarg Infra Investment Trust (RIIT), sponsored by the National Highways Authority of India (NHAI), was subscribed 16% on the first day of bidding, reflecting early investor participation in the infrastructure investment vehicle linked to national highway assets. Advertisement
According to data from the National Stock Exchange (NSE), the INR 6,000 crore InvIT issue received bids for 3,39,46,950 units against 21,33,33,150 units offered during the first day of subscription. The category reserved for institutional investors saw 20% subscription, while the quota for other investors recorded subscription of 11%.
Prior to the opening of the public issue, the InvIT mobilised INR 1,728 crore from anchor investors. Participants in the anchor book included Life Insurance Corporation of India, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance and Bajaj Life Insurance, reflecting interest from large domestic institutional investors.
The IPO price band for the InvIT has been fixed at INR 99-100 per unit. The public issue opened for subscription earlier this week and will remain available to investors until March 13.
Raajmarg Infra Investment Trust has been established as an infrastructure investment platform designed to monetise operational national highway assets developed under the Toll-Operate-Transfer (TOT) model. The InvIT structure allows infrastructure developers and government agencies to raise capital from public markets while continuing to manage operational assets through special purpose vehicles.
According to the Red Herring Prospectus (RHP), the InvIT proposes an initial portfolio comprising five operational toll road projects located across Jharkhand, Andhra Pradesh, Tamil Nadu and Karnataka. These assets operate under concessions granted by NHAI to project-level special purpose vehicles and together span more than 260 km of highway length.
The toll road assets form part of the Golden Quadrilateral highway network, one of India's major national highway corridors connecting key metropolitan centres. Revenue for the InvIT will be generated primarily through toll collections from these operational road assets.
Infrastructure investment trusts have increasingly been used as a mechanism to monetise operational infrastructure projects in sectors such as roads, power transmission and renewable energy. By pooling revenue-generating assets, InvITs allow institutional and retail investors to participate in infrastructure financing while providing asset owners with a channel to recycle capital into new projects.
The Raajmarg Infra InvIT public issue is aimed at expanding participation beyond institutional investors and creating a long-term investment instrument accessible to domestic retail investors. Through the listing of the InvIT, NHAI is seeking to broaden public participation in the national highway development programme while monetising operational road assets under its portfolio.
The subscription process will continue until the closing date later this week, after which the final allocation of units will be determined based on investor demand.
Source - PTI
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