Synopsis
The NHAI's National Highways Infra Trust has completed its fourth fundraising round, reaching an enterprise value of Rs 18,380 crore, making it the largest monetisation deal in India's road sector history.Key Takeaways
- Historic deal valued at Rs 18,380 crore.
- Total fundraising exceeds Rs 46,000 crore.
- Funds allocated for key highway stretches across multiple states.
- Strong participation from diverse investors including EPFO.
- NHIT's portfolio expands to 26 toll roads.
New Delhi, March 26 (NationPress) The NHAI's subsidiary, National Highways Infra Trust (NHIT), has successfully finalized its fourth round of fundraising, achieving an enterprise value of approximately Rs 18,380 crore. This milestone marks it as the largest monetisation deal in the history of the Indian road sector, as per an official announcement made on Wednesday.
NHIT, which was established by NHAI in 2020, aims to enhance the government's monetisation efforts.
Following this round, the cumulative value realized through all four rounds has surpassed Rs 46,000 crore.
In this fundraising round, NHIT successfully garnered Rs 8,340 crore in unit capital from prominent domestic and international investors, alongside Rs 10,040 crore in debt from domestic financial institutions, according to the Ministry of Road Transport and Highways.
The raised funds will be allocated for acquiring key National Highway segments including the Anakapalle-Narsannapeta, Gundugolanu-Kovvuru, and Chittoor-Mallavaram stretches in Andhra Pradesh, the Bareilly-Sitapur and Muzaffarnagar-Haridwar stretches in Uttar Pradesh/Uttarakhand, the Gandhidham-Mundra stretch in Gujarat, and the Raipur–Bilaspur stretch in Chhattisgarh, totaling a concession value of Rs 17,738 crore (including a premium of Rs 97 crore). Investors subscribed through a book-building process at a cut-off price of Rs 133.50 per unit, which represents a premium over the December 31, 2024 NAV of Rs 131.94 per unit, as stated by the ministry.
The issue witnessed robust demand from both existing and new investors. Various domestic pension and provident funds, including the EPFO, L&T PF, and Indian Oil Corporation PF; insurance firms like Axis Max Life Insurance; banks and financial institutions, including Axis Bank and IndusInd Bank; as well as mutual and investment funds like Nippon India and White Oak Capital, actively participated. Additionally, existing foreign investors such as the Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board also engaged in the book-building process to their maximum capacity.
A notable highlight of this round is the EPFO’s investment of Rs 2,035 crore, marking its inaugural investment in an InvIT. Furthermore, NHAI subscribed to approximately 15% of the units at the same price.
With this round concluded, NHIT will boast a diverse portfolio of 26 operating toll roads (41 toll plazas) with a total length of 2,345 km across 12 states, with concession periods ranging from 20 to 30 years, as stated in the announcement.
