Bharat Highways InvIT IPO subscribed 37% on first day of bidding

Bharat Highways InvIT IPO opens for subscription

The Bharat Highways Infrastructure Investment Trust (InvIT) IPO saw 37 percent subscription on February 28, the first day of bidding, as investors bought 3.83 crore units against the offer size of 10.3 crore units.

Non-institutional investors picked 81 percent units of the allotted quota, while institutional investors bought 2.52 lakh units against the reserved portion of 5.62 crore units, as per the subscription data available with the exchanges.

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

Bharat Highways InvIT has already raised Rs 825.97 crore of the public issue, via anchor book on February 27. 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 institutional investors participated in the anchor book.

GR Highways Investment Manager, the investment manager of the InvIT, has allocated 8,25,97,350 units to anchor investors for Rs 100 per unit.

Also read: RK Swamy sets price band at Rs 270-288 for Rs 423-crore IPO

Further, Bharat Highways InvIT on February 26 mopped up Rs 664.5 crore from its sponsor Aadharshila Infratech by allocating 6,64,50,000 equity shares, for Rs 100 per unit. Aadharshila has a lock in period of 3 years for these shares.

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

All of the InvIT assets in Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh are HAM (hybrid annuity model) projects awarded by NHAI and its revenue stream is primarily through annuity payments from the NHAI. These roads are owned and operated by the project SPVs (special purpose vehicle), which are currently wholly owned by G R Infraprojects (GRIL).