NHAI-Backed Raajmarg Infra Investment Trust IPO Sees 16% Subscription on First Day

Raajmarg Infra Investment Trust IPO Receives 16% Subscription on First Day

The initial public offering (IPO) of Raajmarg Infra Investment Trust (RIIT), sponsored by the state-owned National Highways Authority of India, received a 16% subscription on the first day of bidding. According to data from the National Stock Exchange (NSE), the Rs 6,000-crore IPO received bids for 3,39,46,950 units, as against the 21,33,33,150 units on offer.

Institutional investors subscribed to the IPO at a rate of 20%, while the quota for other investors was subscribed at 11%. Prior to the IPO, RIIT raised Rs 1,728 crore from anchor investors, including LIC, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, and Bajaj Life Insurance, on Tuesday.

The IPO price has been fixed at Rs 99-100 per unit, and the issue is set to conclude on March 13. 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.

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RIIT proposes an initial portfolio of five toll roads in Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka, operating under the Toll-Operate-Transfer model based on concessions granted by the NHAI to the project Special Purpose Vehicle (SPV). The toll roads consist of five toll roads spanning over 260 km, forming part of the Golden Quadrilateral project.