Capital Infra Trust InvIT, an infrastructure investment trust sponsored by Gawar Construction Limited, is set to debut in the market with an initial public offering (IPO) valued at ₹1,578 crores. The IPO, offering an exciting investment opportunity, will be open from January 7 to January 9, 2025, featuring a fresh issue of 10.77 crore shares worth ₹1,077 crores and an offer for sale of 5.01 crore shares valued at ₹501 crores.
With a well-structured price band of ₹99 to ₹100 per share and a lot size of 150 shares, this IPO provides an attractive entry point for investors. Retail investors can participate with a minimum investment of ₹15,000, making it an accessible opportunity to tap into the company’s growth potential. Share allotment is expected on January 10, 2025, followed by listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on January 14, 2025. This is a chance to be part of a promising infrastructure investment trust (InvIT).
Capital Infra Trust InvIT IPO is a fundraise worth ₹1,578 crores comprising fresh issue of 10.77 crore shares and offer for sale of 5.01 crore shares. The IPO will be available for subscription from January 7, 2025, to January 9, 2025, providing an opportunity for investors looking to gain a stake in the infrastructure investment sector.
| Capital Infra Trust InvIT IPO date | January 7, 2025 - January 9, 2025 |
| Price band | ₹99 to ₹100 per share |
| Face value | ₹10 per share |
| Lot size | 150 shares |
| Issue type | Book-built issue InvIT |
| Fresh issue | 10,77,00,000 shares amounting to ₹1,077 crores |
| Offer for Sale (OFS) | 5,01,00,000 shares amounting to ₹501 crores |
| Total issue size | 15,78,00,000 shares amounting to ₹1,578 crores |
| Listing at | BSE, NSE |
The Capital Infra Trust InvIT IPO opens for subscription on January 7, 2025, and closes on January 9, 2025, with allotment slated for January 10, 2025.
| IPO open date | January 7, 2025 (Tuesday) |
| IPO close date | January 9, 2025 (Thursday) |
| Basis of allotment | January 10, 2025 (Friday) |
| Initiation of refunds | January 13, 2025 (Monday) |
| Credit of shares to demat account | January 13, 2025 (Monday) |
| Listing date on exchanges | January 14, 2025 (Tuesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 9, 2025 (Thursday) |
Capital Infra Trust, established in September 2023, is an infrastructure investment trust (InvIT) sponsored by Gawar Construction Limited. The trust operates in line with the SEBI InvIT Regulations, focusing on investments and activities in the infrastructure sector. Gawar Construction Limited, the sponsoring company, is well-known for its expertise in constructing road and highway projects across 19 states in India for various government bodies, including NHAI, MoRTH, MMRDA, and CPWD.
As of December 2024, the sponsor company manages a portfolio of 26 road projects under the Hybrid Annuity Model (HAM) with NHAI, with 11 completed projects, including five acquired assets from Sadbhav Infrastructure Project Limited, and 15 under construction. The Trust received a 'Provisional CRISIL AAA/Stable' rating from CRISIL Ratings Limited on November 11, 2024, for its proposed long-term bank loan facility and Trust NCD(s), further solidifying its financial credibility.
The offer proceeds will be used for providing loans to the Project SPVs to repay or prepay external borrowings, including any accrued interest and prepayment penalties, as well as to settle unsecured loans taken by the Project SPVs from the Sponsor.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 792.27 | 1,543.51 | 2,518.92 | 1,981.42 |
| Assets | 4,905.26 | 4,724.07 | 4,283.33 | 2,502.80 |
| Profit After Tax | 115.43 | 125.77 | 497.19 | 125.56 |
Amount in ₹ crores
Capital Infra Trust InvIT boasts a large portfolio of stable, revenue-generating assets with no construction risks, ensuring long-term cash flows. The portfolio is geographically diversified across multiple states, reducing project risks, and is backed by a strong sector with favorable government policies. The Trust also benefits from opportunities for growth, with rights to expand through acquisitions of assets from the Sponsor’s portfolio and third-party projects.
Additionally, it enjoys solid support from its Sponsor, Project Manager, and Investment Manager, and has a competent management team with a focus on corporate governance. The Trust’s operational assets, totaling 682.425 km of national highways, provide predictable long-term cash flows via the Hybrid Annuity Model and regular annuities from NHAI.
The Capital Infra Trust InvIT faces challenges such as a lack of operating history, making it difficult to predict its future performance. Its formation transactions are subject to NHAI approvals and lender conditions, which could cause delays or uncertainties. The Trust's revenue is heavily reliant on consistent annuity payments, with risks arising from potential early termination of projects, which could reduce termination payments from NHAI.
Additionally, the Trust has relatively short residual concession periods, limiting long-term growth potential, and faces the risk of unpredictable increases in operational and maintenance (O&M) costs, which could impact profit margins. Furthermore, the company is highly dependent on its key managerial personnel, and any loss could adversely affect operations and growth.
The Capital Infra Trust InvIT IPO presents an exciting opportunity for investors to enter the infrastructure investment sector at its early public stage. While the appeal of early investment is strong, making an informed financial decision requires a careful assessment of the company’s fundamentals, market positioning, and growth potential. Prospective investors should perform thorough research to ensure this opportunity aligns with their financial goals and risk tolerance, turning a promising investment prospect into a strategic financial choice.
What is the Capital Infra Trust InvIT IPO?
The Capital Infra Trust InvIT IPO is a main-board offering consisting of a fresh issue of 10.77 crore equity shares and an offer for sale of 5.01 crore shares with a face value of ₹10 per share, aiming to raise a total of ₹1,578 crores. The share price is set between ₹99 and ₹100, with a minimum order quantity of 150 shares. This IPO will be open for subscription from January 7, 2025, to January 9, 2025. Kfin Technologies Limited is the registrar while SBI Capital Markets Limited and HDFC Bank Limited are the book-running lead managers.
When will the Capital Infra Trust InvIT IPO open?
The Capital Infra Trust InvIT IPO will open for subscription on January 7, 2025, and will close on January 9, 2025.
When is the Capital Infra Trust InvIT IPO listing date?
The tentative listing date for the Capital Infra Trust InvIT IPO is Tuesday, January 14, 2025.
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