NHAI Concludes fourth round of Largest InvIT Monetization of around Rs. 18,000 Crore
NHIT has successfully raised ~Rs. 8,340 crore in unit capital from marquee domestic and international investors along with Rs. 10,040 crore in debt from domestic lenders.
Amid successful completing the fourth round of fund-raising at an Enterprise Value of around Rs.18,380 crore, National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT) established by NHAI in 2020 has been utilized in Government of India monetisation programme, with the the largest monetisation transaction in the history of Indian roads sector.
With the completion, the total realized value across the four rounds stood over Rs. 46,000 crore. Meanwhile, the NHIT has successfully raised ~Rs. 8,340 crore in unit capital from marquee domestic and international investors along with Rs. 10,040 crore in debt from domestic lenders.
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The funds will be used for the acquisition of National Highway stretches viz. Anakapalle – Narsannapeta, Gundugolanu – Kovvuru & Chittoor – Mallavaram stretches in Andhra Pradesh, Bareilly – Sitapur & Muzaffarnagar – Haridwar stretches in UP/ Uttarakhand, Gandhidham – Mundra stretch in Gujarat and Raipur – Bilaspur stretch in Chhattisgarh, at a concession value of Rs. 17,738 crore (including premium of Rs. 97 crore).
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A significant development in this round is subscription by the Employees’ Provident Fund Organisation (EPFO) of Rs. 2,035 crore. This is the first ever investment by EPFO in an InvIT. Also, NHAI subscribed to its share of ~15% of the units at the same price, as per the government release.
With completion of this round, NHIT will hold a diversified portfolio of 26 operating toll roads (41 toll plazas) with an aggregate length of 2,345 km spread across 12 states with concession periods ranging between 20 to 30 years, the release added.
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