Capital Infra Trust IPO: InvIT sets price band at Rs 99-100 per unit

Capital Infra Trust IPO

Capital Infra Trust, the infrastructure investment trust (InvIT), has fixed price band for its Rs 1,578-crore initial share sale at Rs 99-100 per unit on January 2. The IPO will open for subscription by institutional and non-institutional investors on January 7, and close on January 9.

This would be the first IPO in the infrastructure investment trust segment in the new year 2025.

The IPO consists of fresh issuance of units worth Rs 1,077 crore, and an offer-for-sale of Rs 501 crore worth units.

Established in September 2023, Capital Infra Trust, sponsored by infrastructure development and construction company Gawar Construction, will utilise fresh issue proceeds for providing loans to the project SPVs (special purpose vehicles) for repaying debt.

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The InvIT primarily intends to acquire, manage and invest in 9 completed and revenue generating initial portfolio assets of 682.4 kms, which are owned and operated by the project SPVs. In fact, the Trust intends to acquire 100% stake in each of the project SPVs from the Sponsor.

In addition to the initial portfolio assets, the Capital Infra Trust, through the Investment Manager Gawar Investment Manager, will also have the right to acquire new projects through a right of first offer with the Sponsor as per the Right of First Offer Agreement.

Its sponsor has a portfolio of 26 road projects on a hybrid annuity mode (HAM) with NHAI. Of which 11 projects are completed, including the five acquired assets which were erstwhile owned by Sadbhav Infrastructure Project, and remaining 15 projects are under-construction.

SBI Capital Markets, and HDFC Bank are acting as the book running lead managers to the issue.