backed Raajmarg InvIT lists at 7% premium on NSE

NHAI-backed Raajmarg InvIT lists at 7% premium on NSE

The IPO was open for subscription from March 11 to March 13 and received strong demand across investor categories. The issue was subscribed 13.74 times by the final day of bidding.

By Meghna Sen

Shares of state-run National Highways Authority of India (NHAI)-sponsored Raajmarg Infra Investment Trust (InvIT) made their market debut at ₹107 per unit on the NSE, a premium of 7% over the issue price of ₹100.

The IPO was open for subscription from March 11 to March 13 and received strong demand across investor categories. The issue was subscribed 13.74 times by the final day of bidding.

Ahead of the issue opening, the InvIT raised ₹1,728 crore from anchor investors, including Life Insurance Corporation of India, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance and Bajaj Allianz Life Insurance.

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The price band for the IPO was fixed at ₹99 to ₹100 per unit.

According to the company's red herring prospectus, the issue size is up to ₹6,000 crore, higher than the ₹5,700 crore proposed in the draft papers filed in January.

The InvIT comprises an initial portfolio of five toll road assets spanning over 260 km across Jharkhand, Andhra Pradesh, Tamil Nadu and Karnataka. These assets operate under the Toll-Operate-Transfer (TOT) model based on concessions granted by NHAI to the respective project special purpose vehicles.

These toll roads are part of the Golden Quadrilateral corridor.

NHAI had earlier incorporated Raajmarg Infra Investment Managers Pvt Ltd as the investment manager for the InvIT.

Raajmarg Infra Investment Managers Pvt Ltd is a collaborative venture with equity participation from institutions such as State Bank of India, Punjab National Bank, National Bank for Financing Infrastructure and Development, Axis Bank, Bajaj Finserv, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank and Yes Bank.

This also marks the first time NHAI has opened its highway asset monetisation programme to retail investors.

SBI Capital Markets was the book-running lead manager for the issue, while Kfin Technologies was the registrar.