Raajmarg Infra Investment Trust InvIT IPO Closed with 1323% Subscription on Day 3; GMP Remains Flat

Raajmarg Infra Investment Trust InvIT IPO closed with strong investor interest on the final day of bidding, with the issue subscribed 13.23 times overall by the market close. However, the grey market premium (GMP) is still flat which means limited expectations of listing gains despite healthy subscription numbers.

Backed by the National Highways Authority of India (NHAI), the InvIT is considered a major component of the government's asset monetization strategy, aimed at unlocking value from operational infrastructure assets.

Raajmarg Infra Investment Trust InvIT IPO Subscription Details

The subscription data looks very strong due to participation from institutional investors, particularly Qualified Institutional Buyers (QIBs).
Overall subscription reached 13.23 times. Where the QIB & NII showed massive interest with subscriptions of 18.76 times & 6.60 times respectively. The IPO was not opened for Retail investors

Issue size, price band and Minimum Investment

The Raajmarg Infra Investment Trust IPO is worth Rs. 6,000 crore, comprising a fresh issue of 60 crore units. The public issue opened for subscription on March 11the and closed today March 13 The price band for the IPO was set at Rs. 99-100 per unit.

The expected Raajmarg Infra Investment Trust InvIT IPO allotment will be done on March 18, The InvIT units are scheduled to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

Raajmarg Infra Investment Trust GMP Today

In the grey market, the RIIT IPO GMP remained subdued. As of March 13, the premium was around Rs. 1.5, indicating a likely listing price of about Rs. 101.5 based on the upper end of the price band.

Brokerage view: Subscribe for long term

Brokerage firm Centrum Broking has recommended a "Subscribe (Long Term)" rating for the issue, given the InvIT's strong central backing.
According to its report, "the trust is one of the first InvITs backed by NHAI with access to a structured pipeline of operational national highway assets, providing predictable cash flows and visibility for growth.Compared with private infrastructure trusts, RIIT's primary advantage lies in its sovereign-backed stability and disciplined leverage profile."

The report also highlighted some risk involved, "Despite the positive outlook, analysts note that the trust faces certain structural risks. As a newly established InvIT, it does not yet have an operational track record. Regulatory changes or policy shifts could also impact the pace of asset monetization and future growth." it further mentioned.