Raajmarg InvIT IPO sees 16% subscription on day one of bidding

Raajmarg Infra Investment Trust, backed by the National Highways Authority of India, saw modest demand on March 12. The InvIT initial public offering was subscribed 16 per cent on the first bidding day. The Rs 6,000-crore issue is open at Rs 99-100 per unit and is set to close on March 13.

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NSE data showed bids for 3,39,46,950 units against 21,33,33,150 units on offer. Institutional investors subscribed 20 per cent of their portion. The quota for other investors reached 11 per cent. The numbers reflected early interest levels across categories during the opening session.

Raajmarg Infra Investment Trust IPO subscription and anchor investors

Before opening to the public, Raajmarg Infra Investment Trust raised Rs 1,728 crore from anchor investors on Tuesday. The anchor book included LIC, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance and Bajaj Life Insurance. The funds were raised ahead of the public bidding that began on Wednesday.

The Red Herring Prospectus stated the Raajmarg Infra Investment Trust IPO size aggregates up to Rs 6,000 crore. The offer is positioned as a long-term investment vehicle, with a focus on retail and domestic participation. It is also intended to support monetisation of National Highway assets through the InvIT structure.

Raajmarg Infra Investment Trust IPO portfolio of toll roads

According to the prospectus, the InvIT is starting with five toll road assets. These assets are located in Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka. They operate under the Toll-Operate-Transfer model. The concessions are granted by NHAI to the project SPV for these roads.

The five toll roads together cover more than 260 km. They form part of the Golden Quadrilateral project. The offering is described as a step towards widening public involvement in National Highway development. The issue remains open until March 13, with subscription levels expected to change during the remaining days.

With inputs from PTI