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Business News/ Markets / Ipo/  Bharat Highways InvIT IPO Day 2: Check GMP, subscription status, review, key dates, more. Apply or not?
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Bharat Highways InvIT IPO Day 2: Check GMP, subscription status, review, key dates, more. Apply or not?

Bharat Highways InvIT IPO opens on February 28, closes on March 1. Bharat Highways InvIT is an infrastructure investment trust with a portfolio of seven highways in India. Bharat Highways InvIT IPO is a book built issue of ₹2,500 crores with a price band of ₹98 to ₹100 per share.

Bharat Highways InvIT IPO opens for subscription today (Wednesday, February 28), and will close on Friday, March 1. (https://www.bharatinvit.com/)Premium
Bharat Highways InvIT IPO opens for subscription today (Wednesday, February 28), and will close on Friday, March 1. (https://www.bharatinvit.com/)

Bharat Highways InvIT IPO opened for subscription on Wednesday, February 28, and will close on Friday, March 1. Bharat Highways InvIT IPO raised 825.97 crore from anchor investors on Tuesday, February 27. The company notified the exchanges that it allocated 8,25,97,350 equity shares at 100 apiece.

Bharat Highways InvIT IPO price band has been set in the range of 98 to 100 per equity share. Bharat Highways InvIT IPO lot size is 150 equity shares and in multiples of 150 equity shares thereafter.

Also Read: Bharat Highways InvIT IPO: Infra investment trust raises 825.97 crore from anchor investors ahead of IPO

Bharat Highways InvIT IPO has reserved not more than 75% of the offer size of the shares in the public issue for Qualified Institutional Buyers (QIB), and not less than 25% of the net issue for Non Institutional Investors (NII).

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Bharat Highways InvIT IPO details.
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Bharat Highways InvIT IPO details.

Tentatively, Bharat Highways InvIT IPO basis of allotment of shares will be finalised on Monday, March 4 and the company will initiate refunds on Tuesday, March 5, while the shares will be credited to the demat account of allottees on the same day. Bharat Highways InvIT shares are likely to be listed on BSE and NSE on Wednesday, March 6.

Also Read: Bharat Highways InvIT IPO: From price band to GMP, here are 10 things to know before subscribing to issue

Bharat Highways InvIT company details

The purpose of Bharat Highways Infrastructure Investment, an infrastructure investment trust, is to purchase, supervise, and invest in a variety of Indian infrastructure assets. According to the SEBI InvIT Regulations, the Trust is permitted to conduct infrastructure investment trust operations.

The company's portfolio comprises of seven highways in Uttar Pradesh, Gujarat, Andhra Pradesh, Maharashtra, and Punjab that are all run on a HAM basis. These roads are owned and managed by the Project SPVs, which are presently completely owned by GRIL, and are operated and maintained in accordance with concession rights given by the NHAI.

From March 31, 2022, to March 31, 2023, Bharat Highways Infrastructure Investment Trust's profit after tax (PAT) increased by 738.34% while its revenue declined by 3.92%.

Bharat Highways IPO Subscription Status

On the second day of bidding, Bharat Highways IPO subscription status was 1.03 times, as per data available on the bourses. Other Investors Portion was subscribed 2.24 times and Institutional Investors Portion was booked 2%.

Bharat Highways InvIT subscription status was subscribed 37% on day 1. Other Investors Portion was booked 81% , and Institutional Investors portion is yet to be booked.

The issue received bids of 3,83,46,450 units against the offered 10,30,12,800 units, according to the data available on the bourses.

Also Read: Bharat Highways InvIT IPO Day 1: Issue subscribed over 0.37 times; check GMP, other details

Bharat Highways InvIT IPO details

Bharat Highways InvIT IPO is a book built issue of 2,500 crores. The issue is entirely a fresh issue of 25 crore shares.

The net proceeds will be utilised for general purposes and to provide loans to the Project SPVs so they may fully or partially repay their respective existing debts, including any accrued interest and prepayment penalties.

HDFC Bank Limited, Axis Capital Limited, IIFL Securities Limited, and ICICI Securities Limited are the issue's lead managers. KFin Technologies Limited is the Issue's Registrar. 

The InvIT's Trustee is IDBI Trusteeship Services Limited. The investment manager, GR Highways Investment Manager Private Limited, and the sponsor, Aadharshila Infratech Private Limited, have been appointed.

Also Read: Bharat Highways Invit IPO: Price band set at 98-100 per share; issue details here

Bharat Highways InvIT IPO GMP today

Bharat Highways InvIT IPO GMP or grey market premium was 0, which meant shares were trading at their issue price of 100 with no premium or discount in the grey market according to investorgain.com

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Bharat Highways InvIT IPO review

Dilip Davda

“The company is having seven highway projects under is current seven SPVs and it doing operations primarily on HAM projects. Since no track records of such InvITs are available and the treaty is not fully understood by the markets, well-informed/cash surplus investors may apply for the medium to long term rewards," said Dilip Davda, the contributing editor at Chittorgarh.

BP Wealth

The brokerage believes that GR Highways Investment Manager Private Limited and its current and potential subsidiaries' access to future road assets will be a key factor in the InvIT's future growth. Since the lender plans to use the net proceeds of the new equity offering to prepay or repay loans made to the Project SPVs, the leverage position of the InvIT will be improved. 

Financially speaking, the company had financial debts of Rs. 3,568.2 crores as of February 01, 2024, and the firm had a net profit of Rs. 101.4 crores on total income of Rs. 388.5 crores in H1FY24.

“As the lender will utilise net proceeds of the fresh equity issue to repay/prepay loans to the Project SPVs that will enhance the InvIT's leverage position. At the current P/BV multiple of 0.8x based on book value as of September 2023, we believe the company is reasonably valued and advise investors to “Subscribe" to the issue from a medium to long-term perspective," the brokerage said.

Also Read: Bharat Highways Invit IPO: Check date, size and key other details

Master Capital Services Limited

From what the brokerage has been able to gather, the trust plans to optimise distributions to unitholders while optimising capital structure to ensure that it has the financial flexibility to undertake future purchases. The Amended and Restated Trust Deed's terms will be followed by the trust as it seeks to acquire other road projects that fulfil the investment aim, thus growing its initial portfolio.

“Additionally, it intends to take advantage of certain acquisition opportunities that may be available by sourcing and acquiring assets from such third parties on a caseby-case basis in accordance with the SEBI InvIT Regulations. Investors looking to invest, can invest in this IPO with a medium to long term perspective," the brokerage said.

Hensex Securities Pvt Ltd

According to Mahesh M. Ojha, AVP - Research and Business Development of Hensex Securities, Bharat Highway InvIT Ltd acquires, manages and invests in a portfolio of infrastructure investment assets in India. The company has a sizeable portfolio with stable revenue generating assets and long term predictable cash flow, geographically diversified road asset portfolio, consistent track record in operating and maintaining projects, with immense growth opportunities due to strong underlying fundamentals and favorable government policy.

“We recommend 'SUBSCRIBE' to the issue with a long term investment perspective," advised Ojha.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 28 Feb 2024, 07:47 AM IST
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