National Infrastructure Trust, an infrastructure investment trust sponsored by Gawar Construction, has filed its draft offer document with the regulator on August 26, 2024 to raise an aggregate amount of Rs 1,600 cr via an issue of units to the public. The IPO comprises fresh issue of units aggregating up to Rs 1200 crore and an offer for sale of up to Rs 400 crore by sponsor selling unitholder.Â
The issue will be made through the book building process wherein 75% excluding the strategic investor portion will be available to institutional investors and 25% to non-institutional investors. The net proceeds are proposed to be utilized towards providing loans to the project SPVs for repayment/ pre-payment, in part or in full, of their respective outstanding loans (including any accrued interest and prepayment penalty); and for general purposes. The units are proposed to be listed on NSE and BSE.
The sponsor to the issue, Gawar Construction, will subscribe to 15% of the total post issue unit capital of the InvIT in order to comply with the sponsor lock in requirements. Trustee and Investment Manager to the issue are Axis Trustee Services and Gawar Investment Manager.
National Infrastructure Trust is an infrastructure investment trust sponsored by Gawar Construction established on September 25, 2023 with the objective to carry on the activities of, and to make investments as, an infrastructure investment trust, as permissible under the SEBI InvIT Regulations.
The sponsor, Gawar Construction is an infrastructure development and construction company in India, with over 15 years of experience, 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 & Highways (MoRTH), Mumbai Metropolitan Regional Development Authority (MMRDA) and Central Public Works Department (CPWD). Since 2008, our Sponsor has undertaken more than 100 road construction projects. As on the date of this document, the 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, and 15 under-construction projects.
National Infrastructure Trust is primarily intended to acquire, manage and invest in the nine completed and revenue generating Initial Portfolio Assets, aggregating to approximately 683.875 kms, operated and maintained pursuant to concessions granted by the NHAI and are owned and operated by the Project SPVs. These roads are located in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka. In addition to the Initial Portfolio Assets, the Trust, through the Investment Manager, will also have the right to acquire new projects through a right of first offer with our Sponsor in accordance with the Right of First Offer Agreement (ROFO Agreement).
The revenue from operations of the SPV for the fiscal 2024, 2023 and 2022 was Rs 1,485 crs, Rs 2.033 crs, Rs 1,908 respectively. Projected cash flows for FY25, FY26 and FY27 is estimated to be Rs 582 crs, Rs 662 crs and Rs 585 crs respectively.Â
