NHAI to Raise ₹10,000 Crore This Month via Two Infrastructure Investment Trusts

National Highways Authority of India (NHAI) Infrastructure Trusts Raise Funds

NHAI is set to mobilise around Rs 10,000 crore this month through share sales at its two infrastructure trusts - Raajmarg Infra Investment Trust (RIIT) and National Highways Infra Trust (NHIT).

Raajmarg Infra Investment Trust (RIIT), NHAI's first public infrastructure investment trust (InvIT), will open for subscription on March 11. RIIT is looking to raise Rs 6,000 crore from the share sale, which will close March 13. The trust plans to sell its units in a price band of Rs 99-Rs 100 a unit. The funds raised will be used to pay NHAI for the acquisition of five toll roads with a total length of 260.19 km.

National Highways Infra Trust (NHIT), a private InvIT backed by global institutional investors such as Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, is also in talks with investors to raise around Rs 4,000 crore to acquire a new set of roads to bolster its portfolio. NHIT is acquiring a portfolio of five road projects from NHAI, which have a combined enterprise value of around Rs 6,200 crore.

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The fundraise is likely to be completed by the end of March, and is expected to be dominated by domestic institutional investors, family offices and high net-worth individuals. Shareholder approval for the acquisition of new roads and raising of funds is expected this week.

NHIT is one of the biggest infrastructure investment trusts in the country, and with Raajmarg InvIT, NHAI is doubling down on this successful monetisation route. InvITs are drawing strong domestic investor demand due to the long term, stable and attractive yields they offer.