Capital Infra Trust Announces Price Band of Rs 99-100 for Upcoming IPO Opening January 7, 2025

Capital Infra Trust, backed by Gawar Construction Ltd, has set a price range of Rs 99-100 per unit for its Rs 1,578-crore IPO. This public offering, opening on January 7 and closing on January 9, marks the first InvIT IPO of 2025. The IPO includes a fresh issue worth Rs 1,077 crore and an offer for sale of units valued at Rs 501 crore by the sponsor selling unitholder.

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The proceeds from the fresh issue will be used to provide loans to project special purpose vehicles (SPVs). These loans will help repay or pre-pay external borrowings from financial lenders. Additionally, they will assist in repaying unsecured loans taken by the project SPVs from the sponsor.

Infrastructure Investment Focus

Gawar Construction is known for its road and highway projects across 19 Indian states. These projects are primarily for government and semi-government bodies like NHAI and the Ministry of Road Transport & Highways. Since 2008, Gawar Construction has completed over 100 road construction projects.

The sponsor's portfolio includes 26 road projects under the hybrid annuity mode (HAM) with NHAI. Of these, 11 projects are completed, including five acquired from Sadbhav Infrastructure Project Ltd. The remaining 15 projects are still under construction.

Trust Establishment and Management

Capital Infra Trust was established in September 2023 and registered with Sebi in March 2024. Its goal is to acquire, manage, and invest in infrastructure assets across India. The trust aims to enhance its portfolio through strategic investments in infrastructure.

SBI Capital Markets Ltd and HDFC Bank are leading the book-running process for this issue. KFin Technologies is serving as the registrar, while Axis Trustee Services is appointed as the sole trustee of the trust.

Listing Plans

The units of Capital Infra Trust are planned to be listed on both BSE and NSE. This listing aims to provide liquidity and attract a broader range of investors to the trust's offerings.

Capital Infra Trust was formerly known as National Infrastructure Trust. It aims to leverage its strategic partnerships and investments to grow its infrastructure asset portfolio effectively.

The IPO's red herring prospectus was filed on December 27, detailing the structure and objectives of this public offering. This document provides potential investors with comprehensive insights into the trust's operations and future plans.