Bharat Highways Infrastructure Investment Trust’s (InvIT) IPO has garnered Rs 825.97 crore from various anchor investors on February 27. On the second day of bidding, February 29, the IPO has been subscribed 37%. With a size of Rs 2,500 crore, it stands as the largest IPO in 2024 so far, receiving a ‘Subscribe’ rating from several brokerages due to its reasonable valuation.
Offer Details
The IPO, which commenced on February 28 and is set to close on March 1, 2024, has a price band of Rs 98-100 per share. It comprises a fresh issue of 25 crore shares. The net proceeds from the IPO will be utilized for providing loans to project SPVs (special purpose vehicles) to repay their outstanding loans and for general purposes.
ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities are the book-running lead managers, while Kfin Technologies serves as the registrar for the IPO. Aadharshila Infratech acts as the sponsor, GR Highways as the investment manager, and IDBI Trusteeship Services as the trustee.
Bharat Highways InvIT is an infrastructure investment trust established to acquire, manage, and invest in a portfolio of infrastructure assets in India, operating under the Sebi InvIT regulations. Its portfolio comprises seven roads operated on a hybrid annuity model (HAM) basis in Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These roads are operated and maintained under concession rights granted by the NHAI and are currently wholly owned by GR Infra, operating through the Project SPVs.
The InvIT has entered into a ROFO (right of first offer) agreement with GR Infraprojects, granting it the right to acquire certain road assets.
Anchor Investors
Several asset management companies, including ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Quant Mutual Fund, Nippon Life India, Axis Mutual Fund, and others, participated as anchor investors in the IPO. Additionally, Societe Generale, Copthall Mauritius Investment, HDFC Life Insurance Company, Max Life Insurance Company, and others also invested in the InvIT.
Financials
For the financial year ended March 2023, the SPV Group reported revenue from operations of Rs 1,537 crore, slightly lower than Rs 1,600 crore in the previous year. However, the profit for FY23 surged to Rs 527 crore from Rs 62.8 crore in FY22. As of September, the InvIT recorded a profit after tax of Rs 101.35 crore, with revenue reaching Rs 388.54 crore.
