New Delhi: National Infrastructure Trust, an investment trust focused on infrastructure projects and sponsored by Gawar Construction Ltd, submitted initial documents to the capital markets regulator for an Initial Public Offering (IPO) worth Rs 1,600 crore on Tuesday.
According to the Draft Red Herring Prospectus (DRHP), the Initial Public Offering (IPO) includes a new issuance of units worth up to Rs 1,200 crore and an Offer For Sale (OFS) of units worth up to Rs 400 crore by the sponsor selling unitholder. The funds raised will be used to provide project SPVs with loans for paying off external borrowings or unsecured loans received from the sponsor.
The problem will be addressed during the book building process, with 75 percent allocated to institutional investors and 25 percent to non-institutional investors, excluding the strategic investor portion. Gawar Construction, the issue sponsor, will acquire 15 pc of the total post-issue unit capital of InvIT to meet sponsor lock-in regulations.
Gawar Construction, the sponsor, is mainly involved in building road and highway projects in 19 Indian states for government and semi-government agencies like NHAI, Ministry of Road Transport & Highway Mumbai Metropolitan Regional Development Authority (MMRDA) and Central Public Works Department (CPWD). Since 2008, the company has initiated over 100 road building ventures.
Based on the preliminary offer document, the sponsor holds 26 road projects under a hybrid annuity mode (HAM) with NHAI. This includes 11 finished projects, including five assets previously owned by Sadbhav Infrastructure Project Ltd, and 15 projects currently under construction
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