NHAI InvIT lists on BSE, Gadkari expects retail portion to rise

New Delhi: NHAI’s Infrastructure Investment Trust (InvIT) non-convertible debentures listed on the BSE on Friday and received overwhelming retail investor response. Union Minister for Road Transport and Highways Nitin Gadkari, who rang the bell to mark the listing, thanked investors and said the retail portion will increase in new such fund-raising ahead.

After the listing of the second tranche of the NHAI Infrastructure Investment Trust (InvIT) and NCD, which earlier this month raised ₹1,430 crore, the minister said the issue was oversubscribed nearly seven times.

”We have reserved 25% of NCDs for Retail Investors...The round 2 of InvIT has been oversubscribed almost 7 times in just 7 hours of its opening. It offers an effective yield of 8.05% per annum with highest credibility,” he said. The minimum investment slab was ₹10,000.

The minister said the listing of InvIT NCDs on BSE is historic as it marks the new dawn for people’s participation in infra funding.

Gadkari said internal rate of return in road infrastructure projects is very good, and 26 greenfield expressways and several other projects are in pipeline which will provide more investment opportunities.

He asked investors to continue their support to infrastructure projects to realise the vision of $5 trillion economy of Prime Minister Narendra Modi.

Gadkari said huge investments in infrastructure especially roads, are crucial to the socio-economic development of our country & he was confident that more retail investors will take part in next rounds and gradually overtake institutional investors.

On 13 October, Gadkari had said that NHAI’s InvIT is looking to raise additional ₹3,800 crore.

Addressing the gathering, NHAI chairperson Alka Upadhyaya said the forthcoming InvITs from the NHAI will have more units reserved for retail but did not quantify.

PTI contributed to this story.