Bharat Highways InvIT files draft papers with Sebi to raise ₹2,000 crore via IPO

Infrastructure investment trust Bharat Highways InvIT has filed a draft prospectus for raising with capital markets regulator Sebi. 2,000 crore through an initial public offering (IPO).

“Bharat Highways InvIT, an infrastructure investment trust set up to acquire, manage and invest in the country’s infrastructure asset portfolio and other activities under the SEBI InvIT Regulations has submitted its DRHP to the regulator on December 21, 2022, to raise a total amount of Rs. 2,000 cr through a public-facing unit,” the company said in a statement.

The issue will be made through the book building process where 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 used to provide loans to the Project SPVs for partial or full repayment/prepayment of the respective loans (including accrued interest and prepayment penalties); and for general purposes. It is proposed to list the units on NSE and BSE.

The sponsor of the issue, Lokesh Builders Pvt Ltd, a part of the GR Group, will subscribe 15 per cent of the total post-issue unit capital of InvIT to meet the lock-up requirements of the sponsor after the issue. will be reduced in size.

GRIL, a BSE and NSE listed company, is a flagship entity of the GR Group and is engaged in integrated road engineering, procurement and construction with over 25 years of experience in 16 states of India and design and construction of various road/highway projects. More than 100 road construction projects executed since 2006.

Bharat Highways InvIT was formed in August 2022 to acquire 100 percent stake in each SPV of the GR Infrastructure Ltd project including GDDHPL, where InvIT initially proposes to acquire 49 percent stake.

Its assets will include seven HAM highway assets, namely Phagwara Expressway, Porbandar Dwarka Expressway, Gundugolanu Devarapalli Highway, Akkalkot Solapur Highway, Varanasi Sangam Expressway, Sangli Solapur Highway, Dwarka Devariya Highway of 497.29 km in Maharashtra, Andhrat Gujara and Uhrat across Gujarat. As per concessions granted by Pradesh NHAI. The assets are currently owned by GRIL, who are partners of the sponsor.

For the years ended March 31, 2022, 2021 and 2020, this was the total revenue of the SPV Group. 447.23 million, 160.01 million, 217.03 million and 309.27 crore respectively. FY23, FY24 and FY25 are estimated to be the projected cash flows 473 million, 958 million and 942 crore, respectively.

The development of the infrastructure sector has been a priority area for the government and public investment has increased over the years. India has the second largest road network in the world, totaling 6.37 million km

ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities are the lead managers of the issue.

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