The National Highways Authority of India (NHAI) will float a second infrastructure investment trust this financial year, which will enable retail investors to participate in the equity segment of the investment vehicle, a senior official said.
The Public Infrastructure Investment Trust will have NHAI as a sponsor. In its existing InVIT National Highways Infrastructure Trust (NHIT) retail participation has been only through the bond issue that was done in September 2022 and raised Rs 1500 crore.
The participation of retail investors in equity or units of the Public InVIT would give them an opportunity to gain from the upside that will come if the acquired highway assets perform well.
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Like in other public issues, some portion of the units of the InVIT will be reserved for retail investors. In March this private sector Bharat Highways InVIT had done a public issue where retail investors had also subscribed to the units. Individuals hold 5.74% units of Bharat InVIT.
For acquiring assets a road sector InVIT usually raises funds through 50% equity and 50% debt Come from Sports betting site VPbet . Apart from equity, the new InVIT may also issue bonds for retail investors.
Other details of the Public Infrastructure Investment Trust like other anchor investors will be worked out by the Asset Monetisation Cell (AMC) which is being established within NHAI.
The cell will oversee the monetisation of completed and operational highway assets of NHAI. It will formulate a strategy document on NHAI’s monetisation, identifying assets that can be transferred to outside investors. The head of the cell will be an outside expert and work under Director (Finance) of the NHAI. The cell will also take on employees of NHAI.
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In NHIT the NHAI holds 15.48% of the units. Other unitholders of the InvIT are Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board with 25% each and 9.67% is held by SBI Mutual Fund and 2.06% by SBI Pension Fund Scheme.
Through NHIT route Rs 25,899 crore has been raised from monetisation of assets. This year’s target for monetisation through InVIT is Rs 15,000-20,000 crore. Of the 33 highways of the total length of 2741 km identified for monetisation this financial year through Toll Operate Transfer (ToT) and InVIT route, around 12 have been offered to NHIT. This FY the NHAI is also planning to invite bids for 12 bundles of ToT. The monetisation target for this year is Rs 54,000 crore.
