National Infrastructure Trust, has filed its Draft Offer Document with the Securities and Exchange Board of India (SEBI) on August 26, to raise an aggregate amount of Rs 1,600 crore through a public issue of units.
The proposed Initial Public Offering (IPO) will consist of a fresh issue of units aggregating up to Rs 1,200 crore and an offer for sale of up to Rs 400 crore by the Sponsor Selling Unitholder.
The units will be offered through a book-building process, with 75 per cent of the issue, excluding the strategic investor portion, allocated to institutional investors and the remaining 25 per cent to non-institutional investors.
Fund utilisation
The net proceeds from the issue are intended to be used for providing loans to Project Special Purpose Vehicles (SPVs) for the repayment or prepayment of their outstanding loans, including any accrued interest and prepayment penalties, as well as for general purposes. The units will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Gawar Construction Limited, the sponsor of the issue, will subscribe to 15 per cent of the total post-issue unit capital of the Trust to meet the sponsor lock-in requirements.
Axis Trustee Services Limited will act as the Trustee, and Gawar Investment Manager Private Limited will serve as the Investment Manager for the issue.
About the company
National Infrastructure Trust was established on September 25, 2023, with the objective of acquiring, managing, and investing in infrastructure assets in compliance with SEBI InvIT Regulations. The Trust is primarily focused on acquiring, managing, and investing in an initial portfolio of nine completed and revenue-generating infrastructure assets. These assets include approximately 683.875 kilometres of roads operated and maintained under concessions granted by the National Highways Authority of India (NHAI). The roads are situated across several states including Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh, and Karnataka.
The Trust's sponsor, Gawar Construction Limited, has over 15 years of experience in infrastructure development and construction, with a specialization in road and highway projects. The company has undertaken more than 100 road construction projects across 19 states in India for various government and semi-government bodies. As of the date of this Draft Offer Document, GCL has a portfolio of 26 road projects on a hybrid annuity mode (HAM) with NHAI, of which 11 are completed and 15 are under construction.
The revenue from operations for the SPV was Rs1,485 crore in Fiscal 2024, Rs2,033 crore in Fiscal 2023, and Rs1,908 crore in Fiscal 2022. Projected cash flows for the upcoming fiscal years are estimated to be Rs582 crore for FY25, Rs662 crore for FY26, and Rs585 crore for FY27.
SBI Capital Markets Limited and HDFC Bank Limited are the lead managers to the issue, while KFin Technologies Ltd will serve as the registrar.
