Capital Infra Trust Price Band Rs. Determines 99-100 per unit; The IPO will open next week

Gawar Construction Ltd-sponsored infrastructure investment trust Capital Infra Trust on Friday said it has raised its Rs. 1,578-crore initial public offering (IPO) per unit at Rs. A price band of 99-100 has been fixed. The IPO which will open for public subscription on January 7 will close on January 9, the company said in a statement.

A public issue of Capital Infra Trust (formerly National Infrastructure Trust) is set to become the first InvIT IPO of 2025.

In IPO Rs. Fresh issue of units up to 1,077 crore and sponsor selling by unitholders up to Rs. The offer for sale (OFS) of units worth up to Rs 501 crore is included, according to a red herring prospectus filed on December 27.

The net proceeds from the fresh issue will be used by the company to provide loans to project special purpose vehicles (SPVs), for repayment/prepayment of external debt, partially or fully, from financial lenders and loans to the project. SPVs for repayment of unsecured loans obtained by the project SPV from the sponsor.

The sponsor, Gawar Construction, is primarily engaged in construction of road and highway projects in 19 states of India for various government/semi-government organizations and statutory authorities including NHAI, Ministry of Road Transport and Highways, Mumbai Metropolitan Regional Development Authority. MMRDA) and Central Public Works Department (CPWD).

Since 2008, the company has undertaken more than 100 road construction projects.

According to RHP, the company’s sponsor has a portfolio of 26 road projects on hybrid annuity mode (HAM) with NHAI, of which 11 projects have been completed, including five acquired assets, previously owned by Sadbhav Infrastructure Project Ltd and 15 under construction projects.

Capital Infra Trust (formerly National Infrastructure Trust) was established in September 2023 and registered with SEBI in March 2024 with the objective of acquiring, managing and investing in a portfolio of infrastructure assets in the country.

SBI Capital Markets Limited, HDFC Bank is the book-running lead manager, while KFin Technologies is the registrar of the issue. Axis Trustee Services has been appointed as the sole trustee of the trust.

It is proposed to list the units of the company on BSE and National Stock Exchange (NSE).