NHIT has established itself as a leading player in the InvIT space, says Jain
Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board lead investors in the Rs.16,000 crore raised by the National Highway Authority of India (NHAI), based on Enterprise Value, through ‘InvIT Round-3’ for 889-km of National Highway stretches.
The Canadian https://www.cppinvestments.com/ funds are existing unitholders and subscribed to the maximum limit of 25% each.
Others investors in NHAI InvIT were domestic pension/provident funds (IOCL Employee’s PF, L&T Staff PF, Rajasthan Rajya Vidyut Karamchari Pension Fund, SBI Pension etc.), insurance companies (Tata AIG, SBI Life, HDFC Life), mutual funds (SBI, Nippon India), banks and few others.
It is the largest fund https://www.otpp.com/en-ca/ raising under National Highways Infra Trust (NHIT), NHAI’s infrastructure Investment trust, the Ministry of Road Transport and Highways said on 19 Mar 2024.
A Letter of Acceptance (LOA) to raise the highest ever concession value through ’InvIT Round-3’ was issued in February 2024.
In the third round of monetization https://www.onlinesbi.sbi/ , NHIT has raised unit capital of around Rs.7,272 crore from marquee domestic and international investors and debt of around Rs.9,000 crore from Indian lenders.
This is to fund the acquisition of National Highway https://nhai.gov.in/ stretches, at a base concession fee of around Rs.15,625 crore, and additional concessional fees of Rs.75 crore.
The units were subscribed by investors through a book build process at a cut off price of Rs.124.14 per unit, at a premium over the current NAV of Rs.122.86 per unit https://morth.nic.in/ .
NHAI also subscribed to its share of ~15% of the units at the same price.
With completion of the third round of monetization the total realized value of all three rounds of InvIT stands at Rs.26,125 crore and holds a diversified portfolio of fifteen operating toll roads with an aggregate length of about 1,525 km spread across the 9 states – Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh and West Bengal. The concession period for these stretches range between 20 to 30 years.
National Highways Infra Trust (NHIT) was set up in 2021 to support the Indian Government’s National Monetization Pipeline.
Commenting on the success of latest round NHAI’s monetisation, MoRTH Secretary Anurag Jain said on 19 Mar, “NHIT is a successful example of Public Private Partnership (PPP), in which it has played a very important role in supporting National Monetisation Pipeline https://www.conexpoconagg.com/ .
“While doing that NHIT has established itself as a leading player in the InvIT space, playing a critical role in channelizing financial capital into the further development of Indian roads sector.”
Santosh Kumar Yadav, NHAI Chairman, added, “We are pleased that NHIT has successfully completed the largest monetisation of roads for NHAI. We expect it to continue to play a stellar role in the monetisation and development of the Indian roads sector”.
Suresh Goyal, MD of the Investment Manager of NHIT, said, “We thank the existing investors for their continued faith and welcome the new partners for coming on board in strengthening NHIT and supporting NHAI in the development of India’s road sector.”
Since November 2021, NHIT has cumulatively raised around Rs.12,000 crore through first two rounds of monetization for acquisition of eight operating road assets with an aggregate length of 636 km from NHAI. Historically, units of NHIT were issued at a price of Rs.101 in November 2021 and were listed on both BSE and NSE. Fiinews.com
