| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 99 to ₹ 100 | 150 | 07th Jan, 2025 – 09th Jan, 2025 | ₹ 1,077.00 Cr |
About Capital Infra Trust InvIT IPO
Capital Infra Trust, established on September 25, 2023, is an infrastructure investment trust sponsored by Gawar Construction Ltd. (GCL). Its primary objective is to engage in activities and investments permitted under the SEBI InvIT Regulations. The trust was formalized through a Trust Deed by GCL, later amended, and registered with SEBI as an infrastructure investment trust on March 7, 2024. The sponsor, GCL, is a prominent infrastructure development and construction company in India with over 15 years of experience, specializing in the construction of roads and highways across 19 states. It has collaborated with various government and semi-government bodies, including the National Highways Authority of India (NHAI), the Ministry of Road Transport & Highways (MoRTH), the Mumbai Metropolitan Regional Development Authority (MMRDA), and the Central Public Works Department (CPWD). Since 2008, GCL has executed more than 100 road construction projects and currently manages a portfolio of 26 road projects under the hybrid annuity model (HAM) with NHAI. This portfolio comprises 11 completed projects including five acquired assets previously owned by Sadbhav Infrastructure Project Limited and 15 ongoing projects. GCL complies with the SEBI InvIT Regulations, meeting the requisite eligibility criteria and track record for developing infrastructure projects. Capital Infra Trust aims to acquire, manage, and invest in nine completed and revenue-generating initial portfolio assets. These assets span approximately 682.425 km and are operated and maintained under concessions granted by NHAI. These assets are owned and managed by the respective Project SPVs. Beyond the initial portfolio, the trust, through its Investment Manager, holds the right to acquire additional projects from its sponsor under a Right of First Offer Agreement, ensuring a pipeline of potential future investments.
Objective of the Capital Infra Trust InvIT IPO
The company proposes to utilize net proceeds towards funding the following objects:
- Providing loans to the Project SPVs for repayment/pre-payment of external borrowings, in part or in full, from the financial lenders (including any accrued interest and prepayment penalty); and
- Providing loans to the Project SPVs for repayment of unsecured loans availed by the Project SPVs from the Sponsor.
Rationale To Capital Infra Trust InvIT IPO
Attractive sector with strong underlying fundamentals and favourable government policies
The roads and highways sector are essential to India’s overall economy. The development of the infrastructure sector has been a priority area for the Government and has witnessed enhanced public investment over the years. In the Union Budget for FY2023-24, approximately Rs. 2.7 trillion was budgeted for the MoRTH, 25% higher than the revised estimates for FY2022-23. Further, Phase I of Bharatmala Pariyojana envisages the construction of about 24,800 km of highways under the following categories: National Corridor (North-South, East-West and the Golden Quadrilateral), economic corridors, inter-corridor roads, feeder roads, international connectivity, border roads, coastal roads, port connectivity roads and expressways. The scheme will include the existing NHDP programme as well. The government’s focus on sustained increase in budgetary allocations for the sector and the development of comprehensive infrastructure policies is likely to benefit the company’s business by bringing in more opportunities to acquire assets
Favorably positioned due to temporally and geographically diversified road asset portfolio
The Initial Portfolio Assets consist of nine operational HAM assets located across seven states of India, namely, Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka. The company believes that the geographic diversity of the Initial Portfolio Assets will play a significant role in developing experience and expertise, including the ability to evaluate, acquire, operate and maintain new projects. The Concession Agreements of the Project SPVs are also diverse and are expected to expire at different times. The residual terms of the operations period range between 10.09 years to 13.84 years. Capital Infra Trust Invit believe that temporally and geographically diverse project portfolios and project managers’ expertise leveraged from existing projects provide an advantage in capitalizing on new opportunities available in the roads and highways sector.
Valuation of Capital Infra Trust InvIT IPO
Capital Infra Trust (erstwhile National Infrastructure Trust) is an infrastructure investment trust sponsored by Gawar Construction Ltd (GCL), a leader in India’s road and highway development. The Sponsor has an established track record of efficient project management and execution involving trained and skilled manpower, efficient deployment of equipment and an in-house integrated business model. These attributes have enabled the company to complete projects on or before the scheduled completion period. The in-house supply chain management ensures that key construction materials are delivered promptly to the facilities and construction sites, enabling the Sponsor to manage its processes effectively and maintain its key raw material inventory optimally. The infrastructure sector is responsible for propelling India’s overall development and enjoys intense focus from the government on initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. Additionally, over time, experienced sponsors build strong relationships with stakeholders such as government authorities, local communities, and financial institutions. Capital Infra Trust intends to leverage the Sponsor’s experience and expertise to gain a competitive advantage within the road infrastructure industry. The Investment Manager intends to expand the initial portfolio by identifying and acquiring additional road projects that meet the investment objectives by the provisions of the Trust Deed. The Investment Manager will be selective concerning new projects it acquires in the future and will rely on the relevant policies of the Trust to make investment decisions in road projects. Based on the FY24 book value, the current issue is valued at a P/BV multiple of 0.31x. Given the positive growth in India’s infrastructure, particularly in roads and highways, we advise investors to “Subscribe” to the issue.
What is the Capital Infra Trust InvIT IPO?
Capital Infra Trust Invit is a book built issue of Rs 1,578.00 crores. The issue is a combination of fresh issue of 10.77 crore shares aggregating to Rs 1,077.00 crores and offer for sale of 5.01 crore shares aggregating to Rs 501.00 crores. Login to your account now.
How to apply for the Capital Infra Trust InvIT IPO through StoxBox?
To apply for the Capital Infra Trust InvIT IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Capital Infra Trust InvIT IPO open?
Capital Infra Trust InvIT IPO is opening on 07th January 2025. Apply Now
What is the lot size of the Capital Infra Trust InvIT IPO?
The Lot Size of Capital Infra Trust InvIT IPO is 150 equity shares. Login to your account now
When is the Capital Infra Trust InvIT IPO allotment date?
The allotment Date for Capital Infra Trust InvIT IPO is 10th January 2024. Login to your account now.
When is the Capital Infra Trust InvIT IPO listing date?
The listing Date for Capital Infra Trust InvIT IPO is 14th january 2025. Login to your account now
What is the minimum investment required for the Capital Infra Trust InvIT IPO?
In the Retail segment the minimum investment required is Rs. 15,000. Login to your account now
What is the maximum investment allowed for the Capital Infra Trust InvIT IPO?
In the Retail segment the maximum investment requirement is Rs. 195,500. Login to your account now
What are the risks associated with investing in the Capital Infra Trust InvIT IPO?
- The Trust is newly settled and does not have an established operating history, making it difficult to assess its future growth prospects accurately.
- Any failure or inability of the Trust to identify and acquire new infrastructure assets that generate comparable revenue, profits, or cash flows may adversely affect its business, financial condition, cash flows, results of operations, and ability to make distributions.
- The Trust is subject to regulatory restrictions regarding its debt financing and refinancing, which may adversely affect its operations and ability to distribute to unitholders.
When will the Capital Infra Trust InvIT IPO shares be credited to my Demat account?
The Capital Infra Trust InvIT IPO be credited to the account on allotment date which is 13th January 2025. Login to your account now
Where can I find the Capital Infra Trust InvIT IPO prospectus?
The prospectus of Capital Infra Trust InvIT IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Capital Infra Trust InvIT IPO?
| IPO Open Date | Tuesday, January 7, 2025 |
| IPO Close Date | Thursday, January 9, 2025 |
| Basis of Allotment | Friday, January 10, 2025 |
| Initiation of Refunds | Monday, January 13, 2025 |
| Credit of Shares to Demat | Monday, January 13, 2025 |
| Listing Date | Tuesday, January 14, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 9, 2025 |
