NHAI-Backed Raajmarg Infra Investment Trust IPO Sees 13.74-Fold Subscription on Final Day

Raajmarg Infra Investment Trust's Maiden IPO Sees Strong Demand

Key Highlights

• Rs 6,000 crore public issue of Raajmarg Infra Investment Trust (InvIT) subscribed 13.74 times by the final day of bidding on March 13.
• The InvIT aims to raise funds to acquire and operate five toll roads under the Toll Operate Transfer (TOT) model, with an initial portfolio of five toll roads in Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka.

IPO Details

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• The price range for the offer is Rs 99-100 per unit, with a total of 21.3 crore units on offer.
• The InvIT received demand for 293.1 crore units, with institutional investors bidding 19.15 times and other investors bidding 7.26 times their allotted quotas.

Market Performance

• Despite the ongoing correction in the equity markets, with the benchmark indices falling by over 5% in the week and over 8% in the current month.

Listing and Trading

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• The IPO share allotment is expected to be finalized by March 18, with trading in Raajmarg Infra Investment Trust units set to commence on March 24.

Project Details

• The InvIT will acquire and operate five toll roads with a concession period of 15 years, forming part of the Golden Quadrilateral project.
• The project SPV will be responsible for the supervision of the operation and maintenance of the toll roads, with the NHAI receiving a concession fee prior to the commencement of the concession.

Funding

• Rs 5,850 crore of net proceeds from the IPO will be utilized for the infusion of debt and equity into the project SPV, with the remaining funds allocated for general purposes.