- National Highways Authority of India plans IPO for Raajmarg Infra Investment Trust
- IPO could raise up to 57 billion rupees or $629 million as early as next month
- Proceeds will fund the project’s special purpose vehicle via debt or equity
The National Highways Authority of India is preparing to launch an initial public offering of its infrastructure investment trust, which could raise as much as 57 billion rupees ($629 million), as soon as next month, according to people familiar with the matter.
Raajmarg Infra Investment Trust has started meeting prospective investors and is likely to begin the share sale in the first half of March, the people said, asking not to be identified because the information is private. Deliberations are ongoing and details including the size and timing of the IPO could change, the people said. A spokesperson for Raajmarg didn't immediately respond to requests for comment.
Proceeds from the offering will be used to provide debt or equity funding to the project's special purpose vehicle, according to IPO prospectus. About 75% of the net issue will be allocated to institutional investors on a proportionate basis, while the remaining 25% will be reserved for non-institutional investors, prospectus showed.
India has 29 registered infrastructure trusts, according to SEBI, of which a few including IRB InvIT Fund, India Grid Trust, Powergrid Infrastructure Investment Trust, Indus Infra Trust and Capital Infra Trust are publicly listed.
SBI Capital Markets Ltd., Axis Bank Ltd., ICICI Securities Ltd. and Motilal Oswal Investment Advisors Ltd. are advising on the offering, according to the prospectus.
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