The infrastructure investment trust (InvIT) is planning to raise Rs 2,000 crore from investors to acquire two to three road assests from its parent firm the National Highways Authority of India (NHAI), reported Livemint.
Set up last year by the NHAI, InvITs are collective investment vehicles that allow direct investments from individual and institutional investors in infrastructure projects, and give them a small portion of the income in returns.
InVIT was set up by the NHAI to monetise its assets and raise funds to build highways. NHAI has raised Rs 6,000 crore through its InVIT, in which CPP Investments and Ontario Teachers’ Pension Fund picked up 25 per cent each as anchor investors.
“NHAI is planning to transfer 2-3 new road assets to the InvIT and, for this, they are planning to raise fresh funds of Rs 1,500-2,000 crore,” a person aware of the development told Livemint.
The person added, “NHAI plans to reach out to new investors including other Canadian pension funds as well as domestic institutional investors for the fundraise, which is expected to be launched next month.”
A second person, aware of the development, added, “For global investors such as pension funds which want to invest large sums of capital in long-term yield generating assets, Indian infrastructure is a very attractive opportunity. These investors are looking to deploy large cheques in roads and renewable assets in India, and InvITs have become a popular investment route for them,” quoted Livemint.
The initial portfolio of InvIT comprised five road assets spread across Gujarat, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh, and Telangana with an aggregate length of 390 km. The tolling revenue for FY21 of the investment trust stood over Rs 460 crore and The enterprise value stood at Rs 8,011.5 crore.
