National Infrastructure Trust Plans Rs 1,600 Crore IPO to Boost Infrastructure Projects
National Infrastructure Trust has filed a Draft Offer Document with the Securities and Exchange Board of India (SEBI) to raise Rs 1,600 crore through a public issue of units. The Initial Public Offering (IPO) will include a fresh issue of units worth Rs 1,200 crore and an offer for sale of Rs 400 crore by the Sponsor Selling Unitholder.
The units will be offered through a book-building process, with 75% allocated to institutional investors and 25% to non-institutional investors. The funds raised will be used for providing loans to Project Special Purpose Vehicles (SPVs) for loan repayments and general purposes. The units will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Gawar Construction Limited, the sponsor, will subscribe to 15% of the total post-issue unit capital to meet sponsor lock-in requirements. Axis Trustee Services Limited will act as the Trustee, and Gawar Investment Manager Private Limited will serve as the Investment Manager for the issue.
Established on September 25, 2023, National Infrastructure Trust aims to acquire, manage, and invest in infrastructure assets. The Trust’s initial portfolio includes nine completed and revenue-generating infrastructure assets, such as 683.875 kilometers of roads across Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh, and Karnataka.
Gawar Construction Limited has over 15 years of experience in infrastructure development, specializing in road and highway projects. The company has completed more than 100 road construction projects across 19 states in India. As of the Draft Offer Document date, GCL has 26 road projects with NHAI, including 11 completed and 15 under construction.
The revenue from operations for the SPV was Rs 1,485 crore in Fiscal 2024, Rs 2,033 crore in Fiscal 2023, and Rs 1,908 crore in Fiscal 2022. Projected cash flows for the upcoming fiscal years are estimated to be Rs 582 crore for FY25, Rs 662 crore for FY26, and Rs 585 crore for FY27.
SBI Capital Markets Limited and HDFC Bank Limited are the lead managers for the issue, while KFin Technologies Ltd will serve as the registrar.
Doubts Revealed
National Infrastructure Trust -: This is an organization that manages and invests in infrastructure projects like roads, bridges, and other public facilities in India.
Rs 1,600 Crore -: This is a large amount of money, specifically 1,600 crore rupees, which is equal to 16 billion rupees. It’s used to fund big projects.
IPO -: IPO stands for Initial Public Offering. It’s when a company sells its shares to the public for the first time to raise money.
SEBI -: SEBI stands for Securities and Exchange Board of India. It’s the organization that regulates the stock market in India.
Draft Offer Document -: This is a detailed document that a company files with SEBI to provide information about its IPO.
Fresh issue -: This means new shares are being created and sold to raise money for the company.
Offer for sale -: This means existing shares are being sold by current shareholders, not creating new shares.
NSE -: NSE stands for National Stock Exchange, one of the major stock exchanges in India where shares are bought and sold.
BSE -: BSE stands for Bombay Stock Exchange, another major stock exchange in India.
Gawar Construction Limited -: This is a company that builds infrastructure projects like roads and bridges. They are sponsoring the National Infrastructure Trust.
Post-issue unit capital -: This refers to the total value of all the shares after the IPO is completed.
Infrastructure assets -: These are physical structures like roads, bridges, and buildings that are essential for a country’s economy.
683.875 km of roads -: This is the total length of roads managed by the National Infrastructure Trust, which is almost 684 kilometers.
