Muted Listing: Bharat Highways InvIT Makes A Subdued Entry On Exchanges At 1% Premium From IPO Price

Bharat Highways Infrastructure Investment Trust (InvIT) made a muted debut on the stock exchanges today. The infrastructure investment trust, which hit the market with an initial public offering (IPO) to raise Rs 2,500 crore, listed at Rs 101.10 per share on the National Stock Exchange (NSE), a modest 1.1% premium over its issue price of Rs 100.

Market observers noted that the grey market premium (GMP) for Bharat Highway InvIT has been subdued. The IPO, which saw lacklustre demand in the pre-listing market, commanded a negligible premium of Rs 2 per share, indicating a limited listing pop.

The IPO of Bharat Highways InvIT witnessed robust subscription figures, garnering 8.02 times the subscription on the final day of the bidding process. Investors snapped up 82.53 crore units against the offer size of 10.3 crore units. Institutional investors displayed significant interest, oversubscribing their quota by 8.91 times, while non-institutional investors subscribed 6.93 times their allotted portion.

The IPO, which ran from February 28 to March 1, featured an entirely fresh share sale of up to 25,00,00,000 units in the price band of Rs 98-100 per unit. The net proceeds from the IPO, exclusively a fresh issue component, are earmarked for providing loans to Project SPVs (special purpose vehicles) for the repayment of outstanding loans, including accrued interest and prepayment penalty. The remaining funds will be directed towards general corporate purposes.

ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities acted as the lead managers for the IPO, with KFin Technologies serving as the registrar.

Bharat Highways InvIT is an infrastructure investment trust established to acquire, manage, and invest in a portfolio of infrastructure assets in India, adhering to SEBI InvIT Regulations. The trust's sponsor, Aadharshila Infratech, specializes in testing services in the field of transportation engineering. With expertise in NSV survey, FWD survey, pavement design of roads and airports, physical and chemical testing of soil, lime, cement, road roughness testing, and concrete and bituminous mix design of road projects, Aadharshila Infratech brings valuable experience to the infrastructure sector.

For the period ending in September 2023, Bharat Highways InvIT reported a profit after tax of ₹101.35 crore and a revenue of Rs 388.54 crore. The company's fiscal year ending March 31, 2023, showcased a robust bottom line of Rs 527.05 crore, supported by a revenue of Rs 1,537.47 crore. These figures underline the financial strength and stability of Bharat Highways InvIT, providing investors with a glimpse into the trust's solid financial performance.

As investors absorb the subdued listing performance, many are eagerly anticipating the post-listing trajectory of Bharat Highways InvIT. The muted debut and limited grey market premium raise questions about the immediate market sentiment towards the trust. However, industry experts suggest that long-term prospects may provide a more accurate assessment of Bharat Highways InvIT's potential.

Market analysts recommend a cautious approach for investors, emphasizing the importance of monitoring the trust's performance in the coming weeks. With a substantial subscription during the IPO phase and a promising portfolio of seven road assets, Bharat Highways InvIT remains positioned for growth.