NHAI completes largest InvIT monetization of over Rs 18,000 crore

New Delhi: The National Highways Infra Trust (NHIT), an Infrastructure Investment Trust (InvIT) established by the National Highways Authority of India (NHAI) in 2020, has successfully concluded its fourth round of fundraising, achieving an enterprise value of approximately Rs 18,380 crore. This milestone marks the largest monetization transaction in the history of the Indian roads sector. With this latest round, the total realized value across all four rounds has now surpassed Rs 46,000 crore.

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In this fundraising exercise, NHIT secured approximately Rs. 8,340 crore in unit capital from prominent domestic and international investors, in addition to Rs. 10,040 crore in debt financing from domestic lenders. These funds will be utilized for the acquisition of several key national highway stretches, including:

Anakapalle – Narsannapeta, Gundugolanu – Kovvuru, and Chittoor – Mallavaram in Andhra Pradesh

Bareilly – Sitapur and Muzaffarnagar – Haridwar in Uttar Pradesh and Uttarakhand

Gandhidham – Mundra in Gujarat

Raipur – Bilaspur in Chhattisgarh

The total concession value for these acquisitions stands at Rs 17,738 crore, inclusive of a premium of Rs 97 crore. Investors subscribed to NHIT’s units through a book-building process at a cut-off price of Rs 133.50 per unit, reflecting a premium over the December 31, 2024 net asset value (NAV) of Rs 131.94 per unit.

The fundraising received strong demand from a broad spectrum of investors, including domestic pension and provident funds such as the Employees’ Provident Fund Organisation (EPFO), L&T PF, Rajasthan Rajya Vidyut Karamchari PF, and Indian Oil Corporation PF. Additionally, insurance companies like Axis Max Life Insurance, financial institutions including NaBFID, Axis Bank, and IndusInd Bank, as well as investment firms like Nippon India, Baroda BNP Paribas, Nuvama, and White Oak Capital participated in the issue. NHIT’s existing foreign investors, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board, also fully subscribed to their allocated limits.

A landmark aspect of this round is EPFO’s investment of Rs. 2,035 crore, marking its first-ever investment in an InvIT. Furthermore, NHAI itself subscribed to approximately 15 percent of the issued units at the same price.

Following this successful round, NHIT’s portfolio will expand to encompass 26 operational toll roads with 41 toll plazas, covering a total length of 2,345 km across 12 states. The concession periods for these assets range between 20 to 30 years, further strengthening NHIT’s position as a key player in India’s highway monetization strategy.

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