Bharat Highways InvIT Announces IPO Price Band of ₹98-100, Offering Opens on February 28th

Bharat Highways InvIT on Thursday fixed the price band at ₹98 to ₹100 per equity share for its initial public offering (IPO), which would be the largest so far in 2024.

The public offer of Aadharshila Infratech Pvt-sponsored InvIT will open for subscription on February 28 and close on March 1. Bharat Highways InvIT is offering equity shares worth ₹2,500 crore to investors through the IPO, according to offer documents filed with the Securities and Exchange Board of India (Sebi).

The bidders, other than anchor investors, can make applications for a minimum lot size of 150 shares and in multiples thereof. The minimum investment is ₹14,700 for retail investors.

Bharat Highways InvIT IPO details

The issue is being made through the book-building process. Institutional investors can bid for a maximum of 75% of the net issue while the non-institutional investor portion has been fixed at not less than 25% of the net issue.

The IPO shares will be allotted to eligible investors on March 7, according to offer documents. The units are proposed to be listed on the National Stock Exchange of India (NSE) Ltd and the BSE Ltd. ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities are the appointed book-running lead managers for the issue. KFin Technologies has been appointed as the registrar of the IPO. Bharat Highways InvIT filed draft papers for the IPO with Sebi in December 2023. The InvIT received observation from the Sebi earlier this year.

The company has proposed to utilise the IPO proceeds to extend loans to the Project SPVs (special purpose vehicles) for the repayment of outstanding loans, inclusive of interest and prepayment penalties.

A part of IPO proceeds will be utilised towards general corporate purposes. The Project SPVs had an outstanding external borrowing of ₹3,568.22 crore as of February 1, 2024.

About Bharat Highways InvIT

Bharat Highways InvIT is an infrastructure investment trust with a primary objective to acquire, manage, and invest in a diversified portfolio of infrastructure assets across India. The sponsor of Bharat Highways InvIT, Aadharshila Infratech Pvt Ltd, is engaged in testing services in the transportation engineering sector. The company specialises in NSV survey, FWD survey, pavement design of roads and airports, physical and chemical testing of soil, lime, cement, road roughness testing, concrete and bituminous mix design of road projects.

The initial portfolio assets of Bharat Highways InvIT consist of seven road assets, all operating on HAM basis, in Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh. These roads are operated and maintained pursuant to concession rights granted by the NHAI and are owned and operated by the Project SPVs, which are currently wholly owned by GR Infraprojects Ltd (GRIL).

The InvIT has signed a ROFO Agreement with GRIL, under which GRIL has granted a right of first offer to the InvIT to acquire certain other assets owned and developed by GRIL. Bharat Highways InvIT looks to acquire 100% of the equity shares in each of the Project SPVs from GRIL.

All of the InvIT Assets are HAM projects awarded by NHAI and the revenue stream is primarily through annuity payments from the NHAI.

The total income of the SPV Group for the six-month period ended September 30, 2023, and the Financial Year ended March 31, 2023, stood at ₹ 388.540 crore and ₹ 1,537.470 crore, respectively.