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State-owned National Highways Authority of India-backed Raajmarg Infra Investment Trust has announced a price band of INR 99 to INR 100 per unit for its INR 6,000 crore Initial Public Offering. The InvIT issue is scheduled to open for subscription on March 11 and close on March 13, while bidding for anchor investors will take place on March 10. The public issue aims to attract wider investor participation in national highway infrastructure while helping monetise highway assets. The investment manager for the trust is Raajmarg Infra Investment Managers Pvt. Ltd., which includes participation from several leading banks and financial institutions.
Raajmarg Infra Investment Trust (RIIT), sponsored by the National Highways Authority of India (NHAI), has fixed a price band of INR 99 to INR 100 per unit for its upcoming Initial Public Offering worth INR 6,000 crore. Advertisement
The InvIT's first public issue will open for subscription on March 11 and close on March 13, while bidding for anchor investors is scheduled to take place on March 10, according to a public announcement. The trust is expected to make its stock market debut on March 24.
The offering is intended to expand public participation in the growth of India's national highway infrastructure sector. The InvIT stated that the initiative is aimed at enabling wider investor participation in highway asset monetisation while creating a long-term investment opportunity mainly targeted at retail and domestic investors.
According to the Red Herring Prospectus (RHP), the size of the IPO has been set at up to INR 6,000 crore. This represents an increase from the earlier planned issue size of INR 5,700 crore that had been proposed when the draft papers were filed earlier this year.
The investment manager for the trust is Raajmarg Infra Investment Managers Pvt. Ltd. (RIIMPL), which was incorporated earlier by NHAI to manage the InvIT. The entity has been formed as a collaborative venture with equity participation from several major banks and financial institutions.
These include State Bank of India, Punjab National Bank, National Bank for Financing Infrastructure and Development (NaBFID), Axis Bank, Bajaj Finserv Ventures Ltd., HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, and Yes Bank.
The InvIT has reserved 75 per cent of the offer size for qualified institutional buyers, while the remaining 25 per cent has been allocated for non-institutional investors.
Infrastructure Investment Trusts have been increasingly used by government-backed infrastructure agencies as a mechanism to monetise operational assets and raise capital for new projects. In recent years, NHAI has relied on InvITs and toll-operate-transfer (TOT) models to recycle capital from operational highway assets and fund fresh road construction and expansion projects across the country.
The launch of Raajmarg Infra InvIT's public issue is expected to further support the government's asset monetisation programme and offer investors exposure to revenue-generating highway assets through a regulated investment platform.
Source PTI
FAQ
1. What is the Raajmarg Infra InvIT IPO and who is sponsoring it?
The IPO is being launched by Raajmarg Infra Investment Trust, which is sponsored by the National Highways Authority of India. The InvIT structure allows investors to participate in revenue-generating infrastructure assets such as operational national highways. Through this public issue, the trust aims to attract wider participation from institutional and domestic investors while supporting the government's asset monetisation strategy in the road infrastructure sector.
2. What is the price band and total size of the IPO?
The trust has fixed a price band of INR 99 to INR 100 per unit for the public offering. The total issue size is up to INR 6,000 crore, which is slightly higher than the earlier proposed size of INR 5,700 crore mentioned in the draft documents. The offering aims to raise capital by offering units of the infrastructure investment trust to investors in the public market.
3. When will the IPO open and close for investors?
The IPO will open for subscription on March 11 and will close on March 13. Prior to the public subscription window, bidding for anchor investors is scheduled to take place on March 10. After completion of the allotment and listing formalities, the InvIT is expected to debut on the stock exchanges on March 24.
4. Who manages the Raajmarg Infra Investment Trust?
The investment manager for the trust is Raajmarg Infra Investment Managers Pvt. Ltd.. The entity was established to manage the InvIT and includes participation from several major financial institutions and banks, including State Bank of India, Punjab National Bank, HDFC Bank, ICICI Bank, and Axis Bank, among others.
5. How is the IPO allocation structured among investors?
According to the offer structure, 75 percent of the issue has been reserved for qualified institutional buyers, while the remaining 25 percent has been allocated for non-institutional investors. This structure aims to ensure participation from large institutional investors while also allowing other investor categories to take part in the offering.
6. Why are InvITs important for infrastructure financing in India?
Infrastructure Investment Trusts are increasingly being used by government agencies to monetise operational infrastructure assets. By transferring revenue-generating assets such as highways into an InvIT, authorities can raise funds from investors and reinvest the proceeds in new infrastructure development. This model has become an important tool for supporting large-scale road construction and expansion projects across India while giving investors access to long-term infrastructure income streams.
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