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NHIT Raises Over Rs 16,000 Crore for NHAI Road Acquisition

The National Highways Infra Trust (NHIT) has recently concluded its fundraising endeavor through ‘InvIT Round-3’. In this latest round, NHIT has triumphantly garnered more than Rs 16,000 crore through a combination of equity and debt. This significant capital infusion, sourced from ‘InvIT Round-3‘, is earmarked for the acquisition of nearly 900 kilometers of road infrastructure from the National Highway Authority of India (NHAI), marking NHAI’s most extensive asset monetization initiative thus far.

 

The funds raised consist of approximately Rs 7,272 crore from notable domestic and international investors in unit capital, along with debt of around Rs 9,000 crore from Indian lenders. The issuance of the letter of acceptance (LOA) for ‘InvIT Round-3’ to augment concession value took place in February 2024.

 

This fundraising initiative garnered considerable interest from both existing and new investors, including foreign pension funds like the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board. Additionally, participation came from various sectors, such as banks, insurance companies, mutual funds, and domestic pension and provident funds, including IOCL Employee’s PF, L&T Staff PF, Rajasthan Rajya Vidyut Karamchari Pension Fund, and SBI Pension. NHAI itself subscribed for a 15% stake in the units at the same price.

 

Through a book-build procedure, investors acquired units at a cutoff price of ₹124.14 each, surpassing the current NAV of Rs. 122.86 per unit. The total realized value from all three rounds amounts to ₹26,125 crore, comprising a diverse portfolio of 15 operational toll roads spanning approximately 1,525 km across Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh, and West Bengal. The concession periods for these projects range between 20 and 30 years.

 

NHIT has emerged as a pivotal entity in supporting the National Monetisation Pipeline, exemplifying successful public-private partnership (PPP). Throughout this process, NHIT has established itself as a significant contributor to the InvIT industry, playing a crucial role in channeling financial resources towards the continued advancement of the Indian roads sector.