Capital Infra Trust IPO: Check price band, objectives, key dates and all you need to know

Capital Infra Trust IPO: Infrastructure investment trust (InvIT) Capital Infra Trust's ₹1,578 crore initial public offer will open for subscription from January 7 to January 9. It has set a price band of ₹99-₹100 per unit.

The initial share sale will consist of new equity shares worth ₹1,077 crore and an offer-for-sale (OFS) worth ₹501 crore.

Capital Infra Trust IPO objectives

The proceeds from fresh issuance of shares will be used to provide loans to the project special purpose vehicles (SPVs) to clear external borrowings. It will also be used to give loans to project SPVs for debt repayment of unsecured loans from the sponsor.

Capital Infra Trust has reserved 75% of the offer for qualified institutional buyers and 25% for non-institutional investors (high-net-worth individuals).

As per the RHP, the Trust plans to acquire, manage, and invest in nine completed and revenue-generating initial portfolio assets (IPAs) of 682.42 km, which are owned and operated by the Project SPVs. These roads are situated in Rajasthan, Haryana, Bihar, Himachal Pradesh, Uttarakhand, Karnataka, and Madhya Pradesh.

As of September 2024, the IPAs have a weighted residual concession life of 11.7 years. The Trust said it seeks to acquire 100% equity shares in each project SPVs from the sponsor.

Capital Infra Trust IPO timeline

• Subscription period: January 7 to January 9
• Basis of Allotment: January 10
• Refund initiation: January 13
• Demat transfer: January 13
• Listing on BSE and NSE: January 14

About Capital Infra Trust

Capital Infra Trust, established in September 2023, is an infrastructure investment trust sponsored by Gawar Construction. It was setup to carry out activities as an InvIT and make investments as per the SEBI InvIT Regulations.

The Trust's sponsor is primarily engaged in constructing roads and highways in 19 states for government, semi-government, and statutory bodies, including the Ministry of Road Transport and Highways (MoRTH), National Highways Authority of India (NHAI), Central Public Works Department (CPWD), and Mumbai Metropolitan Regional Development Authority (MMRDA).

Since 2008, the company's sponsor has undertaken over 100 road construction projects and, as of the date of the offer document, has 26 road projects in hybrid annuity mode with NHAI.