The initial public offering of Capital Infra Trust InvIT will open for subscription on January 7 and the price band for the issue is set at Rs 99 to Rs 100 per unit. The company had filed for public issue of its units aggregating up to Rs 1,578 crore.
The units are proposed to be listed on the BSE and the NSE with the BSE as the designated stock exchange. The issue is being made through the book-building process, wherein not more than 75% of the offer shall be available for allocation on a proportionate basis to institutional investors, and not less than 25% of the offer shall be available for allocation on a proportionate basis to non-institutional investors.Issue size of the IPO based on the upper and lower end of the price band
The InvIT received ‘Provisional CRISIL AAA/Stable (Assigned)’ rating from Crisil Ratings Limited on December 31, 2024.
The InvIT primarily intends to acquire, manage and invest in the nine completed and revenue-generating initial portfolio assets, aggregating to approximately 682.425 km, operated and maintained pursuant to concessions granted by the NHAI and are owned and operated by the Project SPVs. These roads are located in Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka.
The initial portfolio of assets has a weighted average residual concession life of 11.7 years as of September 30, 2024. In addition to the initial portfolio assets, the trust, through the investment manager, will also have the right to acquire new projects through a right of first offer with the sponsor in accordance with the Right of First Offer Agreement (“ROFO Agreement”).
The net proceeds are proposed to be utilized towards (i) providing loans to the Project SPVs for repayment/ pre-payment, in part or in full, of their respective outstanding loans (including any accrued interest and prepayment penalty); and (ii) providing loans to the Project SPVs for repayment of unsecured loans availed by the Project SPVs from the Sponsor.
Lead managers for the issue are SBI Capital Markets Limited, HDFC Bank Limited. Registrar to the Issue is KFin Technologies Limited. Axis Trustee Services Limited has been appointed as the Trustee of the InvIT. Gawar Investment Manager Private Limited has been appointed as the Investment Manager, and Gawar Construction Limited has been appointed as the sponsor.
