The IPO of Capital Infra Trust’s infrastructure investment trust (InvIT) enters day 3 with moderate interest by substring 0.78 times or 78 per cent. Capital Infra Trust came out with a price band for InVIT at ₹99-100 per unit.

The IPO got bids for about 6.86 crore units against 8.84 crore units on offer.

The ₹ 1,578-crore initial share sale consists of fresh shares worth ₹1,077 crore and an offer-for-sale of ₹501 crore by the sponsor-selling unitholder, Gawar Construction Ltd. 

The IPO will close on January 9.

This would be the first InVIT in 2025 to hit the IPO market.

The units are proposed to be listed on BSE and NSE, with the former being the designated exchange. The Issue is being made through the book-building process, wherein not more than 75 per cent of the offer would be available for allocation on a proportionate basis to Institutional Investors, and not less than 25 per cent of the offer shall be available for allocation on a proportionate basis to Non-Institutional Investors.

Anchor investors

Capital Infra Trust mobilised ₹703 crore from anchor investors a day before its initial public offering for public subscription. According to a circular uploaded on the BSE’s website, the anchor round saw participation from various investors, such as domestic mutual funds and insurance companies.

Quant Mutual Fund (MF), HDFC MF, Axis MF, Kotak MF, Baroda BNP Paribas MF, ICICI Prudential MF, Nuvama Wealth, SBI Life Insurance, HDFC Life Insurance, Max Life Insurance, Pico Capital and Navi Finserv, among others, have been allotted units in the anchor round, it showed.

Gurugram-based Capital Infra Trust has allotted 7.10 crore units to 27 entities at ₹99 per unit, aggregating the transaction size to ₹702.99 crore.

The net proceeds are proposed to be used to provide loans to the Project SPVs for repayment/prepayment, in part or in full, of their respective outstanding loans (including any accrued interest and prepayment penalty) and repayment of unsecured loans availed by the Project SPVs from the Sponsor.

The Lead Managers for the Issue are SBI Capital Markets Limited and HDFC Bank Limited. The registrar to the Issue is KFin Technologies Limited. Axis Trustee Services Limited has been appointed as the Trustee of InvIT. Gawar Investment Manager Private Limited has been appointed as the Investment Manager, and Gawar Construction Limited has been appointed the Sponsor.

Road construction projects

Capital Infra Trust (Erstwhile National Infrastructure Trust), an infrastructure investment trust sponsored by Gawar Construction Ltd. Since 2008, the Sponsor has undertaken more than 100 road construction projects. The Sponsor had a portfolio of 26 road projects on a hybrid annuity mode with NHAI, of which 11 are completed projects, including the five acquired assets which Sadbhav Infrastructure Project Limited erstwhile owned, and 15 under-construction projects.

Capital Infra Trust was established to acquire, manage, and invest in a portfolio of infrastructure assets in the country. As of September 30, 2024, nine projects, which are owned, operated, and maintained by the Project SPVs, comprise the Initial Portfolio Assets, consisting of approximately 682.425 km of constructed and operational roads across seven states in India.

The InvIT primarily intends to acquire, manage and invest in 9 completed and revenue-generating initial portfolio assets of 682.4 kms, owned and operated by the project SPVs. The Trust intends to acquire a 100 per cent stake in each project SPV from the Sponsor