Bharat Highways InvIT IPO: 10 things to know before subscribing to Rs 2,500 cr issue

Bharat Highways InvIT IPO: The IPO opened for subscription on February 28 and will close on March 1, 2024

Bharat Highways Infrastructure Investment Trust’s (InvIT) Rs 2,500 crore IPO, the biggest so far in 2024, opened for subscription on February 28. The offer is entirely a fresh issue of 25 crore shares.

Here are 10 key things to know before subscribing to the offer:

1) IPO Dates

The IPO opened for subscription on February 28 and will close on March 1, 2024.

2) Price Band

The price band for the issue has been fixed at Rs 98-100 per share.

3) Offer Details

Bharat Highways InvIT plans to raise Rs 2,500 crore via a fresh issue of 25 crore shares. About 75 percent of the issue will be allocated proportionately to institutional investors, and 25 percent will be available for non-institutional investors.

4) Objectives of Issue

The infrastructure investment trust will utilise the net issue proceeds for providing loans to the project SPVs (special purpose vehicles) for repaying their outstanding loans, and general purposes.

5) Lot Size

Investors can bid for a minimum of 150 equity shares and multiples of 150 after that. Hence the minimum investment by retail investors would be Rs 14,700 (150 (Lot size) x 98 (lower price band)). At the upper end, the bidding amount will increase to Rs 15,000.

6) Company Profile

Bharat Highways 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 permissible under the Sebi InvIT regulations.

Also Read: Bharat Highways InvIT IPO: Sponsor Aadharshila Infratech invests Rs 664.5 crore

Its portfolio consists of seven roads, all of which are operated on a hybrid annuity model (HAM) basis in Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These roads are operated and maintained based on concession rights granted by the NHAI and are owned and operated by the Project SPVs, which are currently wholly owned by GR Infra.

The InvIT has entered into an ROFO agreement with G R Infraprojects under which GR has granted a right of first offer to the InvIT to acquire certain of its road assets.

7) Financials

The revenue from operations of the SPV Group for the financial year ended March 2023 was at Rs 1,537 crore, down marginally from Rs 1,600 crore a year earlier. Profit for FY23 jumped multifold to Rs 527 crore, compared with just Rs 62.8 crore in FY22. For the period ended on September, the InvIT reported a profit after tax at Rs 101.35 crore, with a revenue of Rs 388.54 crore.

8) BRLMs and Sponsor

ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities are the book-running lead managers while Kfin Technologies is the registrar for the IPO. Aadharshila Infratech is the sponsor, GR Highways is the investment manager and IDBI Trusteeship Services is the trustee.

9) Anchor Investors

The company garnered Rs 825.97 crore from several anchor investors on February 27. Asset management companies like ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Quant Mutual Fund, Nippon Life India, Axis Mutual Fund, Aditya Birla Sun Life Trustee, UTI Mutual Fund, Baroda BNP Paribas MF and DSP Mutual Fund were some of the anchor investors in the IPO.

Also Read: Bharat Highways InvIT raises Rs 826 crore via anchor book ahead of IPO

Among others, Societe Generale, Copthall Mauritius Investment, HDFC Life Insurance Company, Max Life Insurance Company, Reliance General Insurance Company, Alpha Alternatives MSAR, and CIM Investment Fund ICAV also invested in the infrastructure investment trust that has a portfolio of seven road assets, which all are operating on HAM basis, in Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh.

10) Listing Date

The basis of allotment will be finalised by March 6, shares will be credited to demat accounts by March 7 and the stock is expected to be listed on the NSE and BSE on March 12, as per the RHP.