NHAI-Backed Raajmarg Infra InvIT IPO Achieves Full Subscription on Day Two

Raajmarg Infra Investment Trust Sees Strong Demand in IPO Bidding

The initial public offering (IPO) of Raajmarg Infra Investment Trust (RIIT), sponsored by the National Highways Authority of India (NHAI), has received strong demand in its second day of bidding on Thursday. As per data from the National Stock Exchange (NSE), the Rs 6,000-crore IPO saw bids for 22,30,37,100 units, against the 21,33,33,150 units on offer, resulting in a subscription ratio of 1.05 times.

Other investors category subscribed to the IPO at a ratio of 1.56 times, while the portion reserved for institutional investors received a subscription of 62%. The IPO price has been fixed at Rs 99-100 per unit. The issue is set to conclude on March 13.

In a related development, Raajmarg Infra Investment Trust raised Rs 1,728 crore from anchor investors, including LIC, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, and Bajaj Life Insurance on Tuesday.

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The IPO marks an important step in increasing public participation in the growth of National Highway infrastructure. The public InvIT aims to unlock the monetisation potential of National Highway assets while creating a high-quality, long-term investment instrument targeting retail and domestic investors.

According to the Red Herring Prospectus (RHP), the IPO issue size aggregates up to Rs 6,000 crore. The InvIT 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 SPV. The toll roads span over 260 km, forming part of the Golden Quadrilateral project.