New Delhi The National Highways Authority of India (NHAI), a part of the government’s National Monetization Pipeline, has launched its Infrastructure Investment Trust (InVIT), which will initially have a portfolio of 5 operating toll roads with a total length of 390 km, and one venture value of ₹8,011.52 crore, the Ministry of Road Transport and Highways (MoRTH) said in a statement on Wednesday.
The ministry said NHAI InvIT attracted two international pension funds, the Canada Pension Plan Investment Board and the Ontario Teachers Pension Plan Board, as anchor investors, who would each hold 25% of the units.
“The remaining units were placed with a diverse set of domestic institutional investors which included pension funds, insurance companies, mutual funds, banks and financial institutions,” the ministry said. ₹2,000 crore from State Bank of India, Axis Bank and Bank of Maharashtra, while the remaining amount will be funded by issuing units ₹6,011.52 crore to international and domestic institutional investors and NHAI as sponsor.
InvITs are collective investment vehicles similar to a mutual fund, enabling direct monetary investments from individual and institutional investors in infrastructure projects that earn them a small portion of the income as returns.
InvITs generally enable developers of infrastructure assets to monetize their assets by pooling multiple assets under a single entity (trust structure).
“These roads are located in the states of Gujarat, Karnataka, Rajasthan and Telangana. NHAI has given new concessions of 30 years for these roads. Considering the long-term nature of the assets, the units of InvIT were placed internationally. and domestic institutional investors,” MoRTH said in the statement.
“The units have been issued under the private placement route under SEBI Invitation Regulations, 2014 at an upper valuation band of Rs 101 per unit. The units will be listed on NSE and BSE,” it said.
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