Bharat Highways InvIT makes tepid market debut, shares gains nearly 3% after listing

Bharat Highways InvIT made a lacklustre debut on stock exchanges on Tuesday, March 12. Shares of the investment infrastructure trust were listed at a premium of 1% at ₹101 per unit on the National Stock Exchange against the issue price of ₹100 per unit.

The InvIT moved in a narrow range of in early deals touching a high of ₹103.55 and a low of ₹101.1 per unit on NSE. More than 45 lakh units changed hands in the first 20 minutes of trade. The traded value was ₹46.59 crore. Its market capitalisation stood at ₹4,544 crore.

Bharat Highways InvIT made a listless debut on BSE. The InvIT was listed at ₹101 per unit and moved in a range of ₹101 to ₹104 in early deals. The units were trading at ₹103.17, up 3 % from the issue price at 10.25 AM.

Bharat Highways InvIT hit the capital market with an initial public offering on February 28 to raise around ₹2,500 crore from public investors.

The infrastructure investment trust seeks to utilise the IPO proceeds for giving loans to its project special purpose vehicles for prepayment of their outstanding debt.

The InvIT in the offer prospectus has mentioned that the prepayment or scheduled payment of outstanding debt will help lower the overall debt profile of the infra investment trust on a consolidated basis and maintain a favourable debt-equity ratio.

An improved debt-equity ratio will enable the InvIT to raise further resources in the future to fund potential business development opportunities and plans to grow and expand its business in the future.

The project SPVs had a total outstanding borrowing of ₹3,568.22 crore as of February 1, 2024.

The initial public offer of the InvIT drew a decent response from public investors as the issue was subscribed eight times at the close of the bidding on March 1.

According to exchange data, bids for a total of 82,53,24,300 units were received in three days against 10.3 crore shares on offer.

Ahead of the launch of the IPO, Bharat Highways InvIT garnered ₹826 crore from anchor investors on February 27.

The Aadharshila Infratech Pvt-sponsored InvIT’s IPO comprised 10,30,12,800 units. The price band was fixed at ₹98 per unit to ₹100 per unit. The minimum lot size was 150 units. The minimum investment was ₹14,700.

Bharat Highways InvIT has been formed to manage, acquire, and invest funds in infrastructure projects. The InvIT currently has a portfolio of seven road assets. These road assets are in five states namely Uttar Pradesh, Punjab, Maharashtra, Andhra Pradesh and Gujarat. The projects are operating on Hybrid Annuity Model (HAM).

The Sponsor of Bharat Highways InvIT, Aadharshila Infratech Pvt, is in the business of testing services for transportation engineering. The sponsor provides services such as designs of roads and airports, NSV survey, FWD survey, physical and chemical testing of soil, lime and cement.

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