NHAI InvIT to be launched by June 2021

The maiden infrastructure Investment trust (InvIT) promoted by the National Highways Authority of India (NHAI), through which it aims to raise Rs 51 billion, is likely to be launched by June 2021. However, the NHAI InvIT will be out of bounds for retail investors as the authority has decided to reserve the much-sought-after InvIT IPO for institutional investors. Reportedly, the SEBI has approved the draft prospectus submitted by the National Highways Infra Investment Managers (NHIIM), the investment manager for the InvIT. The NHIIM is now discussing the contours of the issue with potential investors, both domestic and international. As per the rule, an entity cannot subscribe to more than 25 per cent of the offering. The minimum bid amount has been fixed at Rs 260 million. Besides, NHAI will have to retain a 15 per cent stake for a lock-in period of three years. The units are proposed to be listed on the National Stock Exchange. The proceeds from the listing will be utilised for the infusion of debt or equity into the projects SPV, National Highways Infra Projects Private Limited (NHIPPL), for the payment of the initial estimated concession value to NHAI and for the payment of improvement and repair costs of the five stretches measuring 389 km brought under the SPV. The SPV will collect tolls on these stretches for 30 years. The trust will acquire 100 per cent equity shares of the project SPV from NHAI.