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Business News/ Markets / Stock Markets/  Bharat Highways InvIT IPO: GMP, review to subscription status. Apply or not as bidding ends today?
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Bharat Highways InvIT IPO: GMP, review to subscription status. Apply or not as bidding ends today?

Bharat Highways InvIT IPO: Shares of the trust are trading at par with the upper price band of the IPO

Bharat Highways InvIT IPO review: StoxBox and BP Equities have given 'subscribe' tag to the book build issue. (Photo: Courtesy company website)Premium
Bharat Highways InvIT IPO review: StoxBox and BP Equities have given 'subscribe' tag to the book build issue. (Photo: Courtesy company website)

Bharat Highways InvIT IPO: Bidding for the initial public offering of Bharat Highways InvIT opened on 28th February 2024 and will remain open till 1st March 2024. This means investors have just one day in hand to apply for the public issue. The infrastructure investment trust has fixed the Bharat Highways InvIT IPO price at 98 to 100 per equity share. The trust aims to raise 2,500 crore from this initial offer. As per the Bharat Highways InvIT IPO subscription status, the public issue has been fully subscribed in the first two days of bidding. However, shares of the Bharat Highways InvIT are trading at par in the grey market today.

Bharat Highways InvIT IPO GMP today

According to stock market observers, Bharat Highways InvIT IPO GMP (grey market premium) today is zero, which means the company's stock is neither trading at any premium nor any discount. Market observers went on to add that the grey market sentiment has remained steady regarding Bharat Highways InvIT IPO. They said that shares of Bharat Highways InvIT have been trading at par for the last four days despite the public issue getting fully subscribed in the first two days of bidding.

Bharat Highways InvIT IPO subscription status

By 3:29 PM on day 3 of bidding, the public issue was subscribed 5.72 times whereas others portion was booked 6.30 times. the QIB portion of the book buil dissue has been filled 5.24 times.

A day before the opening of the issue, Bharat Highways InvIT had raised 825.97 crores from anchor investors. Institutions who participated in the anchor were ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Quant Mutual Fund, HDFC Life Insurance, Nippon India Mutual Fund, Axis Mutual Fund, Aditya Birla Mutual Fund, UTI Mutual Fund, Max Life Insurance, Baroda BNP Mutual Fund, Reliance General Insurance and DSP Mutual Fund amongst others.

Bharat Highways InvIT IPO review

Giving a 'subscribe' tag to the public issue, BP Equities said, "As the lender will utilize 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."

Advising the primary market investors to apply for the book build issue, StoxBox report said, "On the financial performance front, the company earned a net profit of 101.4 crores on a total income of 388.5 crores in H1FY24 and the financial indebtedness of the trust as of February 01, 2024 stood at 3,568.2 crores. With the NHAI hybrid annuity projects providing a natural hedge against the risk of adverse interest rate movement in addition to the annuity payments due under the respective concession agreements during the operations period, NHAI is required to pay interest on the reducing balance of the completion cost (equivalent to 60% of the BPC) throughout the operation period at the rate of 3% above the RBI bank rate."

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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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 01 Mar 2024, 09:19 AM IST
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