Bharat Highways InvIT debuts at 1% premium over issue price

Bharat Highways InvIT, an infrastructure investment trust, debuted in the secondary market on Tuesday, March 12. The InvIT began trading with the symbol BHINVIT under the hybrid securities category at Rs 101 apiece on BSE, a premium of one per cent over the upper end of the issue price range. On NSE, Bharat Highways InvIT began its journey in the listed space at Rs 101.1 apiece, a premium of 1.1 per cent.  

Buying in the newly-listed stock gathered steam within a few minutes of listing. At 10:17 am, the stock traded at Rs 102.4 and Rs 102.6 apiece on BSE and NSE, respectively, a premium of about 2.5 per cent. 

Bharat Highways InvIT IPO

The IPO of Bharat Highways InvIT was open for subscription for three trading days, from February 28 to March 1. The public offer received subscription of eight times the equity on offer, receiving bids for 82.5 crore shares as against the 10.3 crore shares on offer, according to provisional exchange data.

Before the launch of the IPO, Bharat Highways InvIT received Rs 826 crore from anchor investors.

The company aims to utilise the proceeds from the issue to grant loans to project special purpose vehicles (SPVs) for repayment of their outstanding loans.

Under the initial share sale, estimated to be worth Rs 2,500 crore, Bharat Highways InvIT shares were available for bidding in the price band of Rs 98-100 in multiples of 150 units, translating into Rs 14,700-15,000 per lot. 

What is Bharat Highways InvIT and what does it do?

Bharat Highways InvIT is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in the country. Its initial portfolio consists of seven road assets, all operating on the hybrid annuity model (HAM), in Punjab, Gujarat, Andhra Pradesh, Maharashtra and Uttar Pradesh.

What are InvITs?

An Infrastructure Investment Trust (InvIT) is an investment vehicle that primarily focuses on investing in infrastructure projects. These trusts are designed to provide investors with an opportunity to invest in infrastructure assets such as roads, highways and airports. One of the key features of InvITs is that they distribute a significant portion of their income to investors in the form of dividends.

How do InvITs work?

Infrastructure investment trusts raise funds from investors through IPOs, which are then used to invest in operational infrastructure projects. The income generated from these projects is distributed to the investors in the form of dividends. Investors can buy units of InvITs through the stock exchange, just like equity, which makes them a convenient and liquid investment option.

Many analysts view infrastructure investment trusts as a promising investment option, especially for those looking to park their funds in the infrastructure space. With their focus on stable income and potential for growth, InvITs often present an attractive opportunity for investors seeking exposure to infrastructure assets.

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