Prospectus filed with SEBI for Rs.1,500cr Non-Convertible Debentures
Canadian funds along with international and domestic investors, have participated in the National Highways Infra Trust’s (NHAI InvIT) Rs.1,430 crore call for part funding its acquisition of three additional road projects from NHAI.
The units have been subscribed by a gamut of institutional investors including Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board, State Bank of India, SBI Pension Fund, SBI Mutual Fund, IOCL Employee Provident Fund, L&T Staff Provident Fund, Rajasthan Rajya Vidyut Karamchari Pension Fund, TATA AIG and Star Union Daiichi Life Insurance.
The placement of units with institutional investors witnessed strong demand from both existing investors, who reposed their commitment by participating in the process, as well as new investors, the Ministry of Road Transport and Highways said on 12 Oct 2022.
NHAI subscribed to the units through preferential allotment to maintain its unit holding of at least 15%.
The units were subscribed through a book build process at Rs.109 per unit, at a premium over floor price of Rs.107.12 per unit.
In addition to the above, NHAI InvIT has also filed prospectus with SEBI for issuance of Non-Convertible Debentures (NCDs) to raise Rs.1,500 crore, said the Ministry.
The NCDs would carry a coupon of 7.90% 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,” said the Ministry.
“Their (investors) participation in this round supports National Monetization Pipeline, in which NHAI has the largest share and is crucial for the Government’s vision of development of roads sector in the country.
“In a historic first, NHAI InvIT has, through a transparent and market driven process, raised the funds in a follow-on issuance with entire premium accruing to NHAI,” added Alka Upadhyaya, NHAI Chairperso.
“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 Upadhyaya.
Launched in November 2021, NHAI InvIT has raised Rs.8,011 crore for NHAI in its maiden round, with initial portfolio of five operating toll roads of 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.
The projects are on concession period ranging between 20 to 30 years, said the Ministry. fiinews.com
