Capital Infra Trust sets price band at Rs 99-100 per unit; IPO to open next week

Capital Infra Trust, an infrastructure investment trust sponsored by Gawar Construction Ltd, on Friday said it has fixed a price band of Rs 99-100 per unit for its Rs 1,578-crore initial public offering (IPO). The IPO that opens for public subscription on January 7, will conclude on January 9, the company said in a statement.

The public issue of Capital Infra Trust (formerly National Infrastructure Trust) is set to become the first InvIT IPO of 2025.

The IPO comprises a fresh issue of units aggregating up to Rs 1,077 crore and an offer for sale (OFS) of units valued up to Rs 501 crore by the sponsor selling unitholder, according to the red herring prospectus filed on December 27.

The net proceeds from the fresh issue will be utilised by the company towards providing loans to the project special purpose vehicles (SPVs) for repayment/pre-payment of external borrowings, in part or in full, from the financial lenders and loans to the project SPVs for repayment of unsecured loans availed by the project SPVs from the sponsor.

The sponsor, Gawar Construction, is primarily engaged in the construction of road and highway projects across 19 states in India for various government/semi-government bodies and statutory authorities, including NHAI, Ministry of Road Transport & Highway, Mumbai Metropolitan Regional Development Authority (MMRDA) and Central Public Works Department (CPWD).

Since 2008, the company has undertaken more than 100 road construction projects.

According to the RHP, the company's sponsor has a portfolio of 26 road projects on a hybrid annuity mode (HAM) with NHAI, of which 11 are completed projects, including the five acquired assets, which were erstwhile owned by Sadbhav Infrastructure Project Ltd, and 15 under-construction projects.

Capital Infra Trust (formerly National Infrastructure Trust) was established in September 2023 and registered with Sebi in March 2024 with the objective to acquire, manage and invest in a portfolio of infrastructure assets in the country.

SBI Capital Markets Ltd, HDFC Bank are the book-running lead managers, while KFin Technologies is the registrar to the issue. Axis Trustee Services has been appointed as the sole trustee of the trust.

The units of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).