Bharat Highways Invit has priced the IPO in the range of INR 98-100 per unit with the issue opening on February 28. The infra-investment trust is offering units worth INR 2,500 crore through the IPO.
The company proposes to use the net proceeds to repay debt availed by the project SPVs (special purpose vehicles) and for general corporate purposes.
The units are proposed to be listed on BSE and NSE.
The issue is being made through the book-building process, wherein about 75% will be available for allocation on a proportionate basis to institutional investors, and 25% will be available for non-institutional investors.
Bharat Highways Invit is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India and to carry on the activities of an infrastructure investment trust, as permissible under the Sebi InvIT regulations.
The InvIT’s initial portfolio consists of seven road assets, all operating on HAM basis, in the states of Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh consisting of approximately 497.292 km of constructed and operational roads.
Additionally, the InvIT has entered in an ROFO agreement with G R Infraprojects pursuant to which GR has granted a right of first offer to the InvIT to acquire certain of its road assets.
The InvIT received rating of AAA/Stable from Crisil Ratings AAA/Stable from CARE Ratings in November last year for its long-term bank facilities aggregating to INR 3000 crore.
The sponsor to the issue, Lokesh Builders, part of the GR Group, will subscribe to 15% of the total post-issue unit capital of the InvIT in order to comply with the sponsor lock-in requirements, post which the issue size will be reduced.
The revenue from operations of the SPV Group for the financial year ended March 2023 was at INR 1,537 crore, down marginally from INR 1,600 crore a year earlier. Profit for FY23 jumped multifold to INR 527 crore, compared with just INR 62.8 crore in FY22.
ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities are the lead managers for the IPO.
