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The Bharat Highways InvIT IPO has opened for subscription, offering investors an opportunity to participate in the infrastructure investment trust. Scheduled to close on March 1, this IPO has already garnered significant attention, raising Rs.825.97 crore from anchor investors on February 27.
With an issue price band set between Rs. 98 and Rs. 100 per equity share and a lot size of 150 equity shares, the IPO presents an avenue for both institutional and retail investors to engage in India’s infrastructure sector.
IPO Details and Structure
The Bharat Highways InvIT IPO is structured as a book-built issue of Rs.2,500 crores, comprising entirely of fresh issue shares totaling 25 crore shares. Notably, the allocation for Qualified Institutional Buyers (QIB) is set at 75% of the offer size, with the remaining 25% earmarked for non-institutional Investors (NII).
The tentative basis for the allotment of shares is expected to be finalized by March 4, with refunds initiated on March 5 and shares credited to demat accounts on the same day. Listing on both BSE and NSE is anticipated for March 6.
Business Operations and Portfolio
Bharat Highways Infrastructure Investment Trust operates with a focus on acquiring, managing, and investing in various Indian infrastructure assets, in compliance with SEBI InvIT Regulations.
Its current portfolio comprises seven highways spanning Uttar Pradesh, Gujarat, Andhra Pradesh, Maharashtra, and Punjab, all operated under the Hybrid Annuity Model (HAM). These roads are owned and managed by Project SPVs, wholly owned by GRIL, and operated under concession rights granted by NHAI.
Financial Performance and Utilization of Proceeds
The financial performance of Bharat Highways Infrastructure Investment Trust showcases a remarkable growth trajectory, with a 738.34% increase in profit after tax (PAT) from March 31, 2022, to March 31, 2023, despite a slight revenue decline of 3.92%.
The net proceeds from the IPO will be utilized for general corporate purposes and to provide loans to Project SPVs for repayment of existing debts, including interest and prepayment penalties.
Lead Managers and Key Entities
HDFC Bank Limited, Axis Capital Limited, IIFL Securities Limited, and ICICI Securities Limited serve as the lead managers for the IPO, overseeing its execution and market positioning. KFin Technologies Limited acts as the Issue’s Registrar, facilitating the process of share allotment.
The InvIT’s Trustee, entrusted with safeguarding investor interests, is IDBI Trusteeship Services Limited. The investment manager, GR Highways Investment Manager Private Limited, and sponsor, Aadharshila Infratech Private Limited, play pivotal roles in strategizing and managing the trust’s operations.
Market Perception and Grey Market Premium
As of the latest report, the grey market premium (GMP) for Bharat Highways InvIT IPO stands at Rs. 0, indicating that shares are trading at their issue price of Rs.100 with no premium or discount. The GMP serves as a gauge of investor sentiment and readiness to pay more than the issue price, reflecting market expectations and demand dynamics.
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