Capital Infra Trust Secures Rs 703 Crore from Anchor Investors Prior to IPO Launch

Capital Infra Trust, an infrastructure investment trust sponsored by Gawar Construction, has successfully raised Rs 703 crore from anchor investors. This announcement came just before its initial public offering (IPO) opened for public subscription. The anchor round attracted a variety of investors, including domestic mutual funds and insurance companies, as detailed in a circular on the BSE's website.

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The Gurugram-based trust allocated 7.10 crore units to 27 entities at Rs 99 per unit, totalling Rs 702.99 crore. Notable participants included Quant Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, and ICICI Prudential Mutual Fund. Insurance firms like SBI Life Insurance and HDFC Life Insurance were also involved.

IPO Details and Usage of Proceeds

The IPO is set to open on January 7 and close on January 9, with a price band of Rs 99-100 per unit. It comprises a fresh issue of units worth up to Rs 1,077 crore and an offer for sale of units valued up to Rs 501 crore by Gawar Construction Ltd., the sponsor selling unitholder. This brings the total IPO size to Rs 1,578 crore.

According to the prospectus, funds from the fresh issue will provide loans to project special purpose vehicles (SPVs) for clearing external borrowings. Additionally, these funds will help repay unsecured loans from the sponsor. The IPO marks the first InvIT IPO of 2025.

Sponsor's Background and Project Portfolio

Gawar Construction is involved in road and highway projects across 19 Indian states for various government bodies, including the NHAI and CPWD. Since 2008, it has completed over 100 road construction projects. The sponsor's portfolio includes 26 road projects under a hybrid annuity model with NHAI; 11 are completed, while 15 are under construction.

Established in September 2023, Capital Infra Trust was created to operate as an InvIT and invest according to SEBI's InvIT norms. The units will be listed on both the BSE and NSE exchanges.

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