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Check subscription on Day 1 and other details, ET Infra


The initial public offering (IPO) of Bharat Highways Invit was subscribed 22% so far on the first day of the bidding process. The IPO received bids for 1.03 crore units as against 2.22 crore units on offer.

The net proceeds from the issue will be utilised for providing loans to the project SPVs for the repayment of loans and other general corporate purposes.

Analysts advised investors to subscribe to the issue as the Invit seeks to expand its asset base through strategic acquisitions. It may also benefit from the government’s enhanced focus on infrastructure.

The government targets constructing 100 km of highways daily and plans to build 65,000 km of national highways, with enhanced public investment.

Arihant Capital has a subscribe recommendation on the IPO, saying the company’s future depends on its ability to successfully navigate factors such as fluctuations in interest rates and inflation as well as reliance on government assistance.

Bharat Highways Invit has priced the IPO in the range of Rs 98-100 per unit. About 75% of the issue will be available for allocation on a proportionate basis to institutional investors, and 25% will be available for non-institutional investors.

Other details

Bharat Highways Invit is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India and to carry on the activities of an infrastructure investment trust, as permissible under the Sebi InvIT regulations.The InvIT has entered into a ROFO agreement with G R Infraprojects, pursuant to which GR has granted a right of first offer to the InvIT to acquire certain of its road assets.

The sponsor of the issue, Lokesh Builders, part of the GR Group, will subscribe to 15% of the total post-issue unit capital of the InvIT to comply with the sponsor lock-in requirements, post which the issue size will be reduced.

The revenue from operations of the SPV Group for the financial year ended March 2023 was at Rs 1,537 crore, down marginally from Rs 1,600 crore a year earlier. Profit for FY23 jumped multifold to Rs 527 crore, compared with just Rs 62.8 crore in FY22.

ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities are the lead managers for the IPO.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

  • Published On Feb 28, 2024 at 04:07 PM IST

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