The subscription period for the Bharat Highways InvIT IPO began on Wednesday, February 28, and will end on Friday, March 1. The Bharat Highways InvIT IPO raised ₹825.97 crore from anchor investors on February 27. The business issued 8,25,97,350 equity shares at ₹100 each.
Bharat Highways InvIT’s IPO pricing band is ₹98 to ₹100 per equity share. The lot size for the Bharat Highways InvIT IPO is 150 equity shares, with subsequent multiples of 150 equity shares.
The Bharat Highways InvIT IPO has reserved no more than 75% of the offer amount of the shares in the public issue for qualified institutional buyers (QIB) and no less than 25% of the net issue for non-institutional investors.
Tentatively, the Bharat Highways InvIT IPO basis of allocation of shares will be concluded on Monday, March 4, and the business will commence refunds on Tuesday, March 5, with the shares being credited to allottees’ demat accounts that same day. Bharat Highways InvIT shares are expected to be launched on the BSE and NSE on Wednesday, March 6.
Bharat Highways Inc. Company Details
The goal of Bharat Highways Infrastructure Investment, an infrastructure investment trust, is to buy, manage, and invest in various Indian infrastructure assets. According to the SEBI InvIT Regulations, the trust is entitled to perform infrastructure investment trust activities.
The company’s portfolio includes seven roads in Uttar Pradesh, Gujarat, Andhra Pradesh, Maharashtra, and Punjab that are all operated on a HAM basis. These roads are owned and managed by the Project SPVs, which are currently entirely owned by GRIL, and are administered and maintained in compliance with the concession rights granted by the NHAI.
Between March 31, 2022, and March 31, 2023, Bharat Highways Infrastructure Investment Trust’s profit after tax (PAT) climbed by 738.34%, while revenue fell by 3.92%.
Bharat Highways’ IPO Subscription Status
According to market statistics, the Bharat Highways IPO subscription status increased by 1.03 times on the second day of bidding. Other Investors’ Portion was subscribed to 2.24 times, while Institutional Investors’ Portion was booked at 2%.
On the first day, 37% of Bharat Highways InvIT subscribers had signed up. The Other Investors component was booked at 81%, while the Institutional Investors portion is still to be booked.
According to market statistics, the issue got bids of 3,83,46,450 units against an offer of 10,30,12,800 units.
Bharat Highways InvIT IPO information
The Bharat Highways InvIT IPO is a ₹2,500 crore book-built issuance. The offering is wholly new, totaling 25 crore shares.
The net profits will be used for general purposes and to make loans to the project SPVs so that they can completely or substantially repay their existing commitments, including any accumulated interest and prepayment penalties.
The issue’s lead managers are HDFC Bank Limited, Axis Capital Limited, IIFL Securities Limited, and ICICI Securities Limited. KFin Technologies Limited is the issue’s registrar.
IDBI Trusteeship Services Limited serves as the trustee for InvIT. The investment manager, GR Highways Investment Manager Private Limited, and the sponsor, Aadharshila Infratech Private Limited, have been selected.
According to investorgain.com, shares of the Bharat Highways InvIT IPO traded at their issue price of ₹100 without any premium or discount on the gray market.
The ‘grey market premium’ reflects investors’ willingness to pay more than the issue price.
Bharat Highways InvIT IPO Review
Dilip Davda
“The company has seven highway projects under its current seven SPVs and operates primarily on HAM projects.” Because no track records for such InvITs exist and the treaty is not completely understood by the markets, well-informed/cash surplus investors may apply for medium- to long-term benefits,” said Dilip Davda, a contributing editor at Chittorgarh.
BP Wealth
The brokerage thinks that GR Highways Investment Manager Private Limited and its existing and potential subsidiaries’ access to future road assets will play an important role in the InvIT’s future success. Since the lender intends to utilize the net proceeds of the new equity offering to prepay or repay loans issued to the project SPVs, the InvIT’s leverage situation will improve.
Financially, the company owed Rs. 3,568.2 crores as of February 1, 2024, and had a net profit of Rs. 101.4 crores on a total income of Rs. 388.5 crores in FY24.
“As the lender, the net proceeds of the fresh equity offering will be used to repay/prepay loans to the project SPVs, increasing InvIT’s leverage position. At the present P/BV multiple of 0.8x based on book value as of September 2023, we feel the firm is properly valued and encourage investors to “subscribe” to the issue for the medium to long term,” the brokerage stated.
Master Capital Services Limited
According to what the brokerage has learned, the trust intends to maximize dividends to unitholders while optimizing its capital structure to guarantee that it has the financial flexibility to make future transactions. The trust will adhere to the requirements of the amended and restated trust deed as it attempts to buy more road projects that meet the investment objective, therefore increasing its original portfolio.
“In addition, it intends to take advantage of any potential acquisition opportunities by sourcing and acquiring assets from such third parties on a case-by-case basis in accordance with the SEBI InvIT Regulations.” Investors can invest in this IPO for the medium to long term, according to the brokerage.
Hensex Securities Pvt. Ltd
According to Mahesh M. Ojha, AVP – Research and Business Development at Hensex Securities, Bharat Highway InvIT Ltd purchases, manages, and invests in an infrastructure investment portfolio in India. The company has a sizable portfolio with stable revenue generating assets and long-term predictable cash flow, a geographically diverse road asset portfolio, a consistent track record of project operation and maintenance, and enormous growth opportunities due to strong underlying fundamentals and favorable government policy.
