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

The IPO of Bharat Highways InvIT is scheduled to be open for bidding from February 28, 2024, to March 01, 2024. The price band for the IPO is set at ₹98 to ₹100 per equity share.

The company plans to raise ₹2,500 crore through an initial public offering (IPO), making it the largest fundraising event of the year thus far.

The net proceeds are proposed to be utilised towards providing loans to the project SPVs for repayment/ pre-payment, in part or in full, of their respective outstanding loans (including any accrued interest and prepayment penalty) and for general purposes.

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The issue is being made through the book-building process, wherein not more than 75% of the net issue shall be available for allocation on a proportionate basis to institutional investors, and not less than 25% of the net issue shall be available for allocation on a proportionate basis to non-institutional investors.

Bharat Highways InvIT (the “InvIT”) is an infrastructure investment trust established to acquire, manage, and invest in a portfolio of infrastructure assets in India, and to carry on the activities of an infrastructure investment trust as permitted under the SEBI InvIT Regulations.

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The InvIT’s initial portfolio consists of seven road assets, all operating on a HAM basis, in the states of Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh, consisting of approximately 497.292 km of constructed and operational roads, as per the company's RHP report. 

Additionally, the InvIT has entered into a ROFO agreement with G R Infraprojects Limited ("GRIL"), pursuant to which GRIL has granted a right of first offer to the InvIT to acquire certain of its road assets.

The InvIT received rating of ‘Provisional CRISIL AAA/Stable (Reaffirmed)’ from Crisil Ratings Limited on November 27, 2023, and ‘Provisional CARE AAA; Stable’ from CARE Ratings Limited on November 30, 2023, for its long-term bank facilities aggregating to ₹30,000 million, and ‘Provisional IND AAA/Stable from India Ratings and Research on December 8, 2023, for its proposed rupee-term loan aggregating to ₹30,000 million, its RHP showed. 

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Lead managers for the issue are ICICI Securities Limited, Axis Capital Limited, HDFC Bank Limited, and IIFL Securities Limited. The registrar for the issue is KFin Technologies Limited. IDBI Trusteeship Services Limited has been appointed as the trustee of the InvIT. 

GR Highways Investment Manager Private Limited has been appointed as the Investment Manager, and Aadharshila Infratech Private Limited has been appointed the Sponsor.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.