Raajmarg Infra InvIT IPO Opens Today: Price Band Set at ₹99 to ₹100 Per Unit
The initial public offering of the state-backed Raajmarg Infra Investment Trust has opened for subscription on Wednesday, March 11. The issue will remain open for investors until March 13.The InvIT is sponsored by the National Highways Authority of India and marks a key step in opening highway infrastructure assets to public market investors.
Anchor Investors Commit ₹1,728 Crore Ahead of IPO
Before the public offering opened, the InvIT secured ₹1,728 crore from anchor investors. The anchor book saw participation from a wide range of institutional investors.Key investors included Life Insurance Corporation of India, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, and Bajaj Allianz Life Insurance.
The anchor allocation also attracted participation from pension funds, insurance companies, banks, mutual funds, provident funds, and alternative investment funds.
Other notable investors included Aditya Birla Sun Life Insurance, Tata AIG General Insurance, and Kotak Mahindra Bank. Several National Pension System Trust schemes managed by SBI, UTI, ICICI Prudential, and Kotak pension funds also participated.
Mutual fund participation came from HDFC Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, DSP, Quant, WhiteOak Capital, and Edelweiss.
Investments were also received from provident funds of Indian Oil Corporation, employees of the Securities and Exchange Board of India, and the Maharashtra State Electricity Board.
Raajmarg Infra InvIT IPO Price Band and Issue Size
The price band for the Raajmarg Infra Investment Trust IPO has been fixed at ₹99 to ₹100 per unit.According to the Red Herring Prospectus, the total issue size is up to ₹6,000 crore. This is higher than the ₹5,700 crore proposed when draft papers were filed in January.
The offering has allocated 75 percent of the issue to qualified institutional buyers, including anchor investors. The remaining 25 percent is reserved for non institutional investors.
Portfolio Includes Five Toll Roads Across Four States
The InvIT will initially hold a portfolio of five toll road assets covering more than 260 kilometres.These highway assets are located across Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka.
The projects operate under the Toll Operate Transfer model based on concessions granted by the National Highways Authority of India to special purpose vehicles managing the projects.
The toll roads are part of the Golden Quadrilateral corridor, one of India’s most important highway networks.
Investment Manager and Institutional Partnership
The investment manager for the InvIT is Raajmarg Infra Investment Managers Pvt Ltd, which was incorporated earlier by the National Highways Authority of India.RIIMPL is a collaborative venture with equity participation from several financial institutions including State Bank of India, Punjab National Bank, National Bank for Financing Infrastructure and Development, Axis Bank, Bajaj Finserv, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, and Yes Bank.
Listing and Allotment Timeline
The allotment of the Raajmarg Infra Investment Trust IPO is expected to be finalised on March 18.The units are likely to be listed on the BSE and the National Stock Exchange of India on March 24.
This offering marks the first time the National Highways Authority of India is allowing retail investors to participate in its highway asset monetization programme.
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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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