Actis-sponsored Nxt-Infra InvIT raises Rs 1,520 crore; Tata Investment Corp, L&T among investors

Actis sponsored Nxt-Infra InvIT raises Rs 1,520 crore; Tata Investment Corp, L&T among investors

Nxt-Infra Trust, an infrastructure investment trust (InvIT) sponsored by global infrastructure and energy investor Actis, raised Rs 1,520 crore in its initial fundraise, which concluded on Friday.

Nxt-Infra houses six road assets that were acquired by Actis from the Welspun group in 2022 for an enterprise valuation of around Rs 6,000 crore.

The fundraise saw participation from various domestic institutional investors such as mutual funds, corporate treasuries and pension funds.

“Some of the domestic investors that participated in the InvIT fundraise include Tata Investment Corporation and L&T’s treasury,” a source told Moneycontrol.

The units of the InvIT will be listed on stock exchanges this week.

The bulk of the fundraise came from an Actis entity as sponsor commitment, sources said. Initially, Actis will hold around 86 percent in the InvIT, but it will have to eventually bring its stake down to 75 percent to meet Securities and Exchange Board of India’s norms for minimum public shareholding.

Of the total fundraise, Rs 1,389.5 crore will be used for repayment of debt of the assets housed under the InvIT.

Also read: Actis to acquire 4 HAM road assets from Patel Infrastructure

The trust’s portfolio comprises roads aggregating to over 2,000 lane kilometres, located across five states and covering key geographies such as Delhi, Haryana, Uttarakhand, Uttar Pradesh and Maharashtra.

The road projects have residual concession periods ranging between 8 and 13 years, according to the offer prospectus filed by Nxt-Infra.

Up to 43.35 percent of the revenue in the nine-month period ended December 31, 2023, came from HAM (hybrid annuity model) projects awarded by the relevant authorities, while 56.65 percent of the InvIT’s total revenue in this period was generated from toll collections.

Spokespersons for Actis, Tata Investment Corporation and L&T could not be immediately reached for a comment.