NHAI InvIT raises Rs 1430 crore via follow-on issuance

NHAI subscribed to the units through preferential allotment to maintain its unit-holding of at least 15 percent. The units were subscribed through a book build process at Rs 109 per unit, at a premium over the floor price of Rs 107.12 per unit.

Further, NHAI InvIT has filed a prospectus with market regulator SEBI for the issuance of non-convertible debentures (NCDs) to raise Rs 1,500 crore. The NCDs would carry a coupon of 7.90 percent payable semi-annually and would be available for subscription by both retail and institutional investors.

The success of the follow-on issuance of units by NHAI InvIT demonstrates its attractiveness to sophisticated institutional investors. Their participation in this round supports the National Monetisation Pipeline, in which NHAI has the largest share and is crucial for the government's vision for the country's roads shaped by PM Modi and Transport Minister Nitin Gadkari.

"In a historic first, NHAI InvIT has, through a transparent & market-driven process, raised the funds in a follow-on issuance with the entire premium accruing to NHAI.

We thank the existing investors for their continuous faith in NHAI InvIT as well as new investors for coming on board in making NHAI InvIT a success," said Alka Upadhyaya, NHAI Chairperson.

Launched in November 2021, NHAI InvIT had raised Rs 8,011 crore for NHAI in its maiden round, with an initial portfolio of five operating toll roads of an aggregate length of 390 km.

With the acquisition of three additional road projects, NHAI InvIT will own, operate and maintain a portfolio of eight operating toll roads with an aggregate length of 636 km spread across the states of Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Telangana and Uttar Pradesh, with concession period ranging between 20-30 years.