National Infrastructure Trust files DRHP for Rs 1,600-crore IPO. Check details

National Infrastructure Trust has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The infrastructure investment trust is sponsored by Gawar Construction (GCL), which will subscribe to 15% of the total post-issue unit capital of the InvIT to meet sponsor lock-in requirements.
The IPO will include a fresh issue of units totaling up to Rs 1,200 crore and an offer for sale of up to Rs 400 crore by the sponsor selling unitholder.


The issue will be conducted through a book-building process, with 75% (excluding the strategic investor portion) allocated to institutional investors and 25% to non-institutional investors.

The units are proposed to be listed on the BSE and NSE.

The net proceeds are proposed to be used for providing loans to project SPVs for the repayment or pre-payment of external borrowings from financial lenders, as well as for repaying unsecured loans obtained by the Project SPVs from the sponsor.

As of the date of the draft offer document, the sponsor has a portfolio of 26 road projects on a hybrid annuity mode (“HAM”) with NHAI, of which 11 are completed projects, including the five acquired assets that were erstwhile owned by Sadbhav Infrastructure Project Limited, and 15 under-construction projects.

National Infrastructure Trust intends to acquire, manage, and invest in the nine completed and revenue-generating Initial Portfolio Assets, aggregating to approximately 683.875 kms, operated and maintained, to concessions granted by the NHAI and owned and operated by the Project SPVs. Three road assets are in Haryana, one each in Rajasthan, Bihar, Himachal Pradesh, Madhya Pradesh, Karnataka and Uttarakhand.

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The sponsor, GCL is an infrastructure development and construction company, with over 15 years of experience, primarily engaged in the construction of road and highway projects across 19 states in India for various government/semi-government bodies, and statutory authorities including NHAI, Ministry of Road Transport & Highways, Mumbai Metropolitan Regional Development Authority (MMRDA) and Central Public Works Department (CPWD). Since 2008, GCL has undertaken more than 100 road construction projects.

The revenue from operations of the SPV for the Fiscal 2024, 2023, and 2022 was Rs 1,485 crore, Rs 2,033 crore, and Rs 1,908 respectively. Projected cash flows for FY25, FY26, and FY27 are estimated to be Rs 582 crore, Rs 662 crore, and Rs 585 crore, respectively.

Axis Trustee Services Limited and Gawar Investment Manager Private Limited are the trustee and investment manager for the issue, respectively. SBI Capital Markets Limited and HDFC Bank Limited are the lead managers, while KFin Technologies is the registrar to the offer.

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