National Infrastructure Trust Set to Launch ₹1,600 Crore IPO with SEBI Nod—Backed by Gawar Construction Ltd

National Infrastructure Trust has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹1,600 crore through an initial public offering (IPO).

Sponsorship and Structure of the IPO

The infrastructure investment trust is sponsored by Gawar Construction (GCL), which will subscribe to 15% of the total unit capital after the issue to meet sponsor lock-in requirements. The IPO will consist of a fresh issue of units worth up to ₹1,200 crore and an offer for sale worth up to ₹400 crore by the sponsor selling unitholder.

Allocation and Listing Details

The IPO will be conducted through a book-building process, with 75% of the units (excluding the strategic investor portion) reserved for institutional investors and 25% for non-institutional investors. The units are expected to be listed on both the BSE and NSE.

Use of IPO Proceeds

The funds raised from the IPO will be used to provide loans to project Special Purpose Vehicles (SPVs) for repaying or prepaying external borrowings from lenders and to repay unsecured loans taken by the Project SPVs from the sponsor.

GCL’s Road Project Portfolio

Gawar Construction (GCL), the sponsor, has a portfolio of 26 road projects under a hybrid annuity mode (HAM) with the National Highways Authority of India (NHAI). This includes 11 completed projects and 15 projects currently under construction.

National Infrastructure Trust’s Future Plans

National Infrastructure Trust plans to acquire, manage, and invest in nine completed and revenue-generating road assets, totaling about 683.875 kilometers. These assets are located in Haryana, Rajasthan, Bihar, Himachal Pradesh, Madhya Pradesh, Karnataka, and Uttarakhand.

GCL’s Experience and Projected Financials

GCL, with over 15 years of experience, has completed more than 100 road construction projects across 19 states in India. The revenue from operations for the SPV was ₹1,485 crore in FY24, with projected cash flows of ₹582 crore, ₹662 crore, and ₹585 crore for FY25, FY26, and FY27, respectively.

Key Players Involved in the IPO

Axis Trustee Services Limited will act as the trustee for the issue, with Gawar Investment Manager Private Limited as the investment manager. SBI Capital Markets Limited and HDFC Bank Limited are the lead managers, and KFin Technologies will handle the registrar duties.