NHAI Infrastructure Trust Files for Initial Public Offering, Targeting Up to $656 Million

Raajmarg Infra Investment Trust Prepares for IPO

The National Highways Authority of India's infrastructure investment trust, Raajmarg Infra Investment Trust, is gearing up to list its units through an initial public offering (IPO) that may raise up to Rs 6,000 crore (approximately $656 million). This upcoming IPO will test the strength of India's market for new listings, which have seen subdued demand recently.

Raajmarg Infra Investment Trust has set a price range of Rs 99 to Rs 100 per unit for the IPO, as per its advertisement. The company plans to accept bids from anchor investors on March 10, and receive orders from the broader public from March 11 to March 13.

The trust plans to have an initial portfolio of five toll roads in the states of Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka, spanning over 260 kilometers (162 miles). According to the company's offering document, this portfolio is expected to attract investors.

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India's IPO market has seen a decline in demand this year, following two consecutive years of record first-time share sales. Data compiled by Bloomberg shows that shares of companies that went public in India this year have seen a weighted-average decline of 0.7% since their listings. Clean Max Enviro Energy Solutions Ltd.'s shares, for instance, tumbled 18% on their first day of trading after a $341 million IPO.

Raajmarg Infra Investment Trust has received guidance from leading advisory firms, including SBI Capital Markets Ltd., Axis Bank Ltd., ICICI Securities Ltd., and Motilal Oswal Investment Advisors Ltd.