NHAI-backed Raajmarg Infra InvIT IPO opens on March 11: Check price band and other details

The initial public offering (IPO) of state-run Highways Authority of India-sponsored Raajmarg Infra Investment Trust opens for subscription on Wednesday, March 11, and will close on March 13.

Ahead of the issue opening, the InvIT raised ₹1,728 crore from anchor investors including Life Insurance Corporation of India, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance and Bajaj Allianz Life Insurance.

The anchor book saw participation from a mix of pension funds, insurance companies, mutual funds, banks, provident funds and alternative investment funds.

Other key investors included Aditya Birla Sun Life Insurance, Tata AIG General Insurance, and Kotak Mahindra Bank, along with several Pension System Trust schemes managed by SBI, UTI, ICICI Prudential and Kotak pension funds.

Mutual funds such as HDFC Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, DSP, Quant, WhiteOak Capital and Edelweiss also participated in the anchor round. Investments were also received from provident funds of Indian Oil Corporation, employees of Securities and Exchange Board of India, and the Maharashtra State Electricity Board.

The price band for the Raajmarg Infra Investment Trust IPO has been fixed at ₹99 to ₹100 per unit.

According to the company's Red Herring Prospectus, the issue size is up to ₹6,000 crore, higher than the ₹5,700 crore proposed when draft papers were filed in January.

The InvIT proposes an initial portfolio of five toll roads spanning over 260 km across Jharkhand, Andhra Pradesh, Tamil Nadu and Karnataka. These assets operate under the Toll-Operate-Transfer model based on concessions granted by NHAI to the project special purpose vehicles.

The toll roads form part of the Golden Quadrilateral corridor.

Earlier, NHAI had incorporated Raajmarg Infra Investment Managers Pvt Ltd as the investment manager for the InvIT.

RIIMPL is a collaborative venture with equity participation from institutions including State Bank of India, Punjab Bank, Bank for Financing Infrastructure and Development, Axis Bank, Bajaj Finserv, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank and Yes Bank.

The InvIT has reserved 75% of the offer for qualified institutional buyers, including anchor investors, while the remaining 25% is allocated to non-institutional investors.

This marks the first time NHAI is opening its highway asset monetisation programme to retail investors.

SBI Capital Markets is the book-running lead manager for the issue, while Kfin Technologies is the registrar.

The allotment of the Raajmarg Infra Investment Trust IPO is expected to be finalised on March 18. Units are likely to be listed on BSE and Stock Exchange of India on March 24.