Bharat Highways InvIT IPO opened for subscription on Wednesday, February 28, and will close today (Friday, March 1). On the second day of bidding, Bharat Highways IPO subscription status was 1.03 times, as per data available on the bourses. Bharat Highways InvIT subscription status was subscribed 37% on day 1.
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Bharat Highways InvIT IPO price band has been set in the range of ₹98 to ₹100 per equity share. Bharat Highways InvIT IPO lot size is 150 equity shares and in multiples of 150 equity shares thereafter.
Bharat Highways InvIT IPO has reserved not more than 75% of the offer size of the shares in the public issue for Qualified Institutional Buyers (QIB), and not less than 25% of the net issue for Non Institutional Investors (NII).
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The purpose of Bharat Highways Infrastructure Investment, an infrastructure investment trust, is to purchase, supervise, and invest in a variety of Indian infrastructure assets. According to the SEBI InvIT Regulations, the Trust is permitted to conduct infrastructure investment trust operations.
Bharat Highways InvIT IPO is a book built issue of ₹2,500 crores. The issue is entirely a fresh issue of 25 crore shares.
The net proceeds will be utilised for general purposes and to provide loans to the Project SPVs so they may fully or partially repay their respective existing debts, including any accrued interest and prepayment penalties.
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HDFC Bank Limited, Axis Capital Limited, IIFL Securities Limited, and ICICI Securities Limited are the issue’s lead managers. KFin Technologies Limited is the Issue’s Registrar.
The InvIT’s Trustee is IDBI Trusteeship Services Limited. The investment manager, GR Highways Investment Manager Private Limited, and the sponsor, Aadharshila Infratech Private Limited, have been appointed.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
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Bharat Highways InvIT Business
Bharat Highways InvIT is an infrastructure investment trust that was created in compliance with the SEBI InvIT Regulations. Its duties include monitoring, investing in, and purchasing a portfolio of infrastructure assets in India in addition to managing the trust’s day-to-day operations. The Original Trust Deed was used by the Settlor, G R Infraprojects Limited (GRIL), to settle the business. In compliance with the SEBI InvIT Regulations, the company registered as an infrastructure investment trust with SEBI on August 3, 2022.
Additionally, through the completion of a right of first offer (ROFO) agreement, GRIL granted the InvIT the right of first offer to buy.
Bharat Highways InvIT Peer
The company’s listed peer is IRB InvIT Fund ( with net asset value per unit is ₹100.63).
Bharat Highways InvIT Parties
The Sponsor, Aadharshila Infratech Private Limited, the Sponsor Group, which consists of Aadharshila Infratech Private Limited, and the Trustee, IDBI Trusteeship Services Limited, are the parties involved.
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Bharat Highways InvIT Financials
From March 31, 2022, to March 31, 2023, Bharat Highways Infrastructure Investment Trust’s profit after tax (PAT) increased by 738.34% while its revenue declined by 3.92%.
Bharat Highways InvIT Assets
The following projects, which are owned, run, and maintained by the Project special purpose vehicle (SPVs), will make up the InvITAssets as of January 31, 2024. These projects total roughly 497.292 km of built and usable road space spread across five Indian states.
The SPVs are GR Phagwara Expressway Limited (GPEL), Porbandar Dwarka Expressway Private Limited (PDEPL), GR Gundugolanu Devarapalli Highway Private Limited (GDHPL), GR Akkalkot Solapur Highway Private Limited (GASHPL), Varanasi Sangam Expressway Private Limited (VSEPL), GR Sangli Solapur Highway Private Limited (GSSHPL), and GR Dwarka Devariya Highway Private Limited (GDDHPL).
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Bharat Highways InvIT IPO lock-in periods
According to the SEBI InvIT Regulations, the Sponsor and Sponsor Group are required to hold at least 15% of the Units after they are issued. These holdings are locked in for three years from the date the Units are listed, subject to the requirements outlined in the SEBI InvIT Regulations.
Any units in the issue that are allocated to anchor investors will be locked in for 30 days from the date of allocation.
Bharat Highways InvIT IPO key risks
- Since InvIT is a recently founded trust with no operational experience, it will be challenging to determine with certainty what its chances for future development are.
- There are a few requirements that must be met before the company can complete the formation transactions and purchase the project SPVs.
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Bharat Highways InvIT IPO rights of unitholders
Beneficial Interest, Ranking, Grievance Redress, Distribution, Information Rights, Buyback and Delisting of Units are among the rights of unitholders.
Other Parties involved in the Bharat Highways InvIT
The other parties involved are the auditor and the valuer.
Bharat Highways InvIT Portfolio
The company’s portfolio comprises of seven highways in Uttar Pradesh, Gujarat, Andhra Pradesh, Maharashtra, and Punjab that are all run on a HAM basis. These roads are owned and managed by the Project SPVs, which are presently completely owned by GRIL, and are operated and maintained in accordance with concession rights given by the NHAI.
