The National Highways Authority of India (NHAI) has started preparations for an initial public offering (IPO) of a highways infrastructure investment trust (InvIT) worth around ₹10,000 crore, making it one of the largest share sales in the infrastructure sector in recent years. According to sources, NHAI has already invited bids from top law firms to act as legal counsel for the IPO and is expected to finalise the appointment within this month.
This will be NHAI’s second InvIT. The authority already operates the private National Highways Infra Trust (NHIT), which is anchored by global investors CPP Investments and Ontario Teachers’ Pension Plan. Details such as the assets to be placed under the new InvIT will be decided later.
InvITs have become a big part of NHAI’s asset monetisation strategy along with toll-operate-transfer model. In March, NHAI completed its 4th round of InvIT monetisation, sold road projects worth ₹18,380 crore to NHIT — the largest road sector monetisation deal in India. In 4 rounds, the authority has raised more than ₹46,000 crore.
The IPO will allow NHAI to tap a larger pool of investors, including retail participants, at a time when demand for InvITs is increasing among domestic investors like family offices, HNIs and corporate treasuries. Other players like KKR backed Vertis Infrastructure Trust and Cube Highways InvIT are also planning IPOs, each expected to raise around ₹5,000 crore. Recent examples include Capital Infra Trust’s ₹1,578 crore IPO in Jan and Bharat Highways InvIT’s ₹2,500 crore IPO in Feb 2024.
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Source: Moneycontrol
News Desk
