Capital Infra Trust’s ₹1,578 cr IPO opens today; raises ₹703 cr from anchor investors

Capital Infra Trust is set to launch its initial public offering (IPO) for its infrastructure investment trust (InvIT) today. The company, (formerly known as National Infrastructure Trust), has fixed price band for InVIT at ₹99-100 per unit, looking to raise ₹1,578 crore at the upper end of the issue price. The issue is a combination of fresh issue of 10.77 crore shares worth ₹1,077 crore and offer for sale of 5.01 crore shares aggregating to ₹501 crore.

The three-day IPO will close on January 9, and the tentative date for listing of InVIT on the domestic stock exchange is January 14. Investors can bid for a minimum of 150 shares and in multiples thereafter. 

As per the offer document filed with the SEBI, the company has reserved 75% of the offer to institutional investors and remaining 25% to non-institutional investors.

A day ahead of the IPO, the company, specialised in infrastructure investment, development, and management, garnered ₹703 crore from anchor investors in the anchor round. The Trust allocated 7,10,10,000 units at ₹99 per unit on January 6, 2025, to anchor investors.

Domestic Institutions who participated in the anchor book includes insurance companies & pension funds such as SBI Life insurance, SBI Pension Fund, HDFC Life, and Axis Max Life Insurance. Mutual Funds such as HDFC Mutual Fund, ICICI Prudential, Quant Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund and BoB Mutual Fund, and other institutions such as Nuvama AIF, Kotak AIF, PICO Capital & NAVI Finserv also participated in the bid.

Out of the total allocation to the anchor investors, 42% of units were allocated to mutual funds, 34% to insurance companies, 14% to pension funds, and remaining to others institutions.

Formed in September 2023, Capital Infra Trust, sponsored by Gawar Construction Limited, is specialised in constructing road and highway projects across 19 states in India for various government bodies, including the NHAI, MoRTH, MMRDA, and CPWD. As of December 2024, the sponsor company's 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.

The company intends to use capital raised from issuance of fresh equities for providing loans to the project special purpose vehicle (SPVs) for repayment of external borrowings; and providing loans to the project SPVs for repayment of unsecured loans availed by them from the sponsor.

Lead Managers for the Issue are SBI Capital Markets Limited, HDFC Bank Limited. Registrar to the Issue is KFin Technologies Limited.