Bharat Highways InvIT has filed papers with the market regulator SEBI to raise ₹2,000 crore through initial public offering (IPO).
As per the Draft Red Herring Prospectus, the issue will be made through the book-building process with 75 per cent (excluding the strategic investor portion) available to institutional investors and 25 per cent to non-institutional investors.
The net proceeds will be used to provide loans to special purpose vehicles (SPVs) floated for repayment of outstanding loans and general purpose.
Bharat Highways InvIT is an infrastructure investment trust established to acquire, manage and invest in portfolio of infrastructure assets in the country and other activities. The units are proposed to be listed on the NSE and BSE.
Issue sponsor
The sponsor to the issue, Lokesh Builders Pvt Ltd, a part of the GR Group, will subscribe to 15 per cent 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 IDBI Trusteeship Services Ltd and GR Highways Investment Manager.
Bharat Highways InvIT was set up in August and proposes to acquire 100 per cent equity shares in each of the Project SPVs from GR Infrastructure, an associate of the sponsor including GDDHPL.
Its assets comprise seven hybrid annuity model road assets including Phagwara Expressway, Porbandar Dwarka Expressway, Gundugolanu Devarapalli Highway, Akkalkot Solapur Highway, Varanasi Sangam Expressway, Sangli Solapur Highway, Dwarka Devariya Highway, spanning 497.29 km across Maharashtra, Andhra Pradesh, Punjab, Gujarat and Uttar Pradesh, pursuant to concessions granted by NHAI. Currently, the assets are owned by GRIL, an associate of the sponsor.
The projected cash flow of the SPV Group for FY23, FY24 and FY25 is estimated to be ₹473 crore, ₹958 crore and ₹942 crore, respectively.