The maiden Infrastructure Investment Trust (InvIT) promoted by the National Highways Authority of India (NHAI), via which it aims to mop up Rs 5,one hundred crore, is most likely to hit the market place by finish-May or early next month, according to official sources.
The NHAI InvIT, the second one promoted by a public-sector entity to be lapped up by investors in a just more than a month – PGlnvlT, sponsored by energy transmission utility PGCIL was launched in late April and its shares very first traded on the exchanges on Friday – will be out of bounds for retail investors.
NHAI has decided to the reserve considerably-sought-following InvIT IPO, via which it aims to monetise some of its assets, for institutional investors.
The sources mentioned market place regulator Sebi has authorized the draft prospectus submitted by the National Highways Infra Investment Managers (NHIIM), the investment manager which will handle the InvIT.
NHIIM is now discussing the contours of the problem with the prospective investors, each domestic and international. As per the rule, an entity can’t subscribe more than 25% of the supplying. The minimum bid quantity has been fixed at Rs 26 crore. As per the rule, the promoter NHAI will have to retain 15% stake for a lock-in period of 3 years.
The units are proposed to be listed on the NSE. Proceeds from the listing shall be utilised for infusion of debt or equity into the projects SPV, National Highways Infra Projects Pvt Ltd (NHIPPL), for the payment of initial estimated concession worth to NHAI and for payment of improvement and repair fees of the 5 stretches measuring 389 km brought beneath the SPV. The SPV will gather tolls on these stretches for 30 years.
The trust will obtain one hundred% of the equity shares of the project SPV from the sponsor NHAI.
The draft placement memorandum NHIIM placed with the market place regulator mentioned that the Board of the investment managers has currently received term sheets from particular lenders in relation to loans amounting to about Rs 6,463 crore, to be availed by the trust. The NHIM chairman and the managing director has been entrusted with the powers to negotiate and finalise the terms of financing for an quantity up to Rs 2,000 crore.