August 27, 2024
New Delhi, India
National Infrastructure Trust (NIT)
National Infrastructure Trust (NIT), established by Gawar Construction Limited (GCL), has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO) aimed at raising ₹1,600 crore. This IPO marks a significant step for NIT in expanding its portfolio and enhancing its role in India’s infrastructure development.
IPO Details:
- Offer Size: ₹1,600 crore
- Fresh Issue: ₹1,200 crore
- Offer for Sale (OFS): ₹400 crore by a Sponsor Selling Unitholder
- Process: The IPO will be conducted through a book-building process.
- Investor Allocation:
- Institutional Investors: 75% of the units (excluding the strategic investor portion)
- Non-Institutional Investors: 25% of the units
- Trustee and Investment Manager:
- Trustee: Axis Trustee Services Limited
- Investment Manager: Gawar Investment Manager Private Limited
- Lead Managers: SBI Capital Markets and HDFC Bank
Use of Proceeds: The proceeds from the IPO will be utilized to acquire and manage infrastructure assets across India. NIT plans to invest in nine completed, revenue-generating road infrastructure projects spanning approximately 683.875 kilometers across various states, including Haryana, Rajasthan, Bihar, Himachal Pradesh, Madhya Pradesh, Karnataka, and Uttarakhand. These investments aim to enhance the efficiency and quality of road infrastructure, contributing to India’s overall economic growth.
Company Overview: National Infrastructure Trust (NIT) was established by Gawar Construction Limited (GCL) on September 25, 2023, and registered with SEBI on March 7, 2024. As an infrastructure trust, NIT focuses on investing in and managing infrastructure assets, with a particular emphasis on road infrastructure. By leveraging GCL’s extensive experience in construction and infrastructure development, NIT aims to create a robust portfolio of high-quality, revenue-generating assets.
Also Read: Premier Energies IPO Opens Today: Key Details And GMP
Financial Performance:
- Revenue from Operations:
- FY24: ₹1,485 crore
- FY23: ₹2,033 crore
- FY22: ₹1,908 crore
- Projected Cash Flows:
- FY25: ₹582 crore
- FY26: ₹662 crore
- FY27: ₹585 crore
- Annuities:
- Total Expected: ₹6,020.10 crore by the end of the concession period
- Received as of June 30, 2024: ₹464.53 crore
IPO Breakdown: The proposed ₹1,600 crore IPO will consist of a fresh issue of units worth ₹1,200 crore and an offer for sale of up to ₹400 crore by a Sponsor Selling Unitholder. The book-building process ensures a transparent pricing mechanism, with a significant portion of the units allocated to institutional investors, underscoring the trust’s appeal to large-scale investors.
Promoter Shareholding: Post-IPO, the promoter and promoter group’s collective shareholding in NIT is expected to adjust, aligning with regulatory requirements and enhancing governance standards. Specific details on the shareholding structure post-IPO are outlined in the DRHP.
Government Support and Industry Context: The Government of India has allocated ₹111 lakh crore (US$1.4 trillion) under the National Infrastructure Pipeline for FY25, highlighting the government’s commitment to developing the country’s infrastructure. Currently, 202 national highway projects worth ₹79,789 crore (US$9.59 billion) are underway, providing a conducive environment for NIT’s investments. This substantial government support underscores the strategic importance of NIT’s initiatives in the broader context of India’s infrastructure development goals.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
