New Delhi, March 9 – The National Highways Authority of India (NHAI)-sponsored Raajmarg Infra Investment Trust (RIIT) announced on Monday that the initial portion of its upcoming IPO will be allocated exclusively to domestic investors.
The anchor book will open for subscriptions on March 10.
"We are in advanced discussions with anchor investors regarding the investment. The initial portion will be allocated to domestic investors," NHAI Chairman Sathosh Kumar Yadav told reporters here ahead of its Rs 6,000-crore initial public offering.
Over Rs 1,700 crore of the issue size will be allocated to anchor investors.
Raajmarg Infra Investment Trust's maiden public offering will open on March 11 and close on March 13. This will be the first time NHAI is opening its asset monetization program to retail investors.
The InvIT's IPO price has been fixed between Rs 99 and Rs 100 per unit.
This initiative marks an important step in broadening public participation in the National Highway infrastructure growth story.
The public InvIT aims to unlock the monetization potential of National Highway assets while creating a high-quality, long-term investment instrument primarily targeting retail and domestic investors.
According to the Red Herring Prospectus (RHP), Raajmarg Infra Investment Trust's IPO issue size aggregates up to Rs 6,000 crore. This was an increase from the Rs 5,700 crore planned when draft papers were filed in January.
The InvIT proposes to have an initial portfolio of five toll roads in Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka under the Toll Operate Transfer model, following the concessions granted by the NHAI to the project SPV.
The toll roads consist of five toll roads spanning a total length of over 260 km and form part of the Golden Quadrilateral project.
Earlier, NHAI had incorporated Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL) as the investment manager for the Raajmarg Infra Investment Trust.
RIIMPL is a collaborative venture with equity participation from leading banks and financial institutions, including State Bank of India, Punjab National Bank, NaBFID, Axis Bank, Bajaj Finserv Ventures Ltd, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, and YES Bank.
The InvIT said that 75 per cent of the offer size is reserved for qualified institutional buyers, including anchor investors; and the remaining 25 per cent for non-institutional investors.
Raajmarg Infra Investment Trust will make its stock market debut on March 24.