Bharat Highways InvIT IPO sees 8.02 times subscription on last day of bidding

The proceeds of the issue will be utilised for providing loans to the project SPVs (special purpose vehicles) for repaying their outstanding loans, and general corporate purposes.

The public issue of Bharat Highways Infrastructure Investment Trust (InvIT) recorded 8.02 times subscription on March 1, the last day of bidding, as investors bought 82.53 crore units against an offer size of 10.3 crore units.

Institutional investors picked up 8.91 times the allotted quota, while non-institutional investors bought 6.93 times the portion set aside for them.

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The infrastructure investment trust, which has a portfolio of seven road assets launched, aims to raise Rs 2,500 crore. The public offer comprises only a fresh issue and the price band for the offer has been fixed at Rs 98-100 per unit.

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Bharat Highways InvIT has garnered Rs 826 crore from the anchor book on February 27. Marquee investors such as HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, Societe Generale, Copthall Mauritius Investment, HDFC Life Insurance Company, and Max Life Insurance Company were among the institutional investors that participated in the anchor book.

Also read: Bharat Highways InvIT IPO fully subscribed on Day 2 so far; should you subscribe to the Rs 2,500-cr issue?

The proceeds of the issue will be utilised for providing loans to the project SPVs (special purpose vehicles) for repaying their outstanding loans, and general corporate purposes.

The InvIT (Infrastructure Investment Trust) assets, located in Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh, consist of projects developed under the hybrid annuity model (HAM) and awarded by the National Highways Authority of India (NHAI). The revenue for these assets primarily comes from annuity payments made by NHAI.

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