NHAI's Infrastructure Investment Trust Completes Record Rs 18,380 Crore Fundraise In Largest Road Monetisation Transaction

National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT) formed by NHAI in 2020, has successfully concluded its fourth fundraising round, achieving an Enterprise Value of Rs 18,380 crore.

This is India's largest road sector monetisation transaction to date, taking NHIT's cumulative realised value through four rounds above Rs 46,000 crore, according to a government release.

During this round, NHIT collected Rs 8,340 crore of unit capital from leading domestic and global investors and Rs 10,040 crore of debt from domestic lenders.

The money will be used to buy seven National Highway stretches in Andhra Pradesh, Uttar Pradesh, Uttarakhand, Gujarat, and Chhattisgarh for a concession price of Rs 17,738 crore, including a Rs 97 crore premium.

The book-building process recorded investors subscribing at a cut-off price of Rs 133.50 per unit, exceeding the 31 December 2024, NAV of Rs 131.94 per unit.

The auction saw strong demand with the involvement of local pension and provident funds like EPFO, L&T PF, Rajasthan Rajya Vidyut Karamchari PF, and IOC PF; insurance entities like Axis Max Life Insurance; and banks and finance institutions like NaBFID, Axis Bank, and IndusInd Bank. Mutual funds and investment companies like Nippon India, Baroda BNP Paribas, Nuvama, and White Oak Capital also bought.

One of the key landmarks in this round was the Employees' Provident Fund Organisation (EPFO) subscribing Rs 2,035 crore, which is its first-ever investment in an InvIT.

NHAI also subscribed to its 15 per cent holding at the same rate.

Through this successful fund-raising, NHIT currently operates a portfolio of 26 operating toll roads (41 toll plazas) covering 2,345 km in 12 states with concession terms of between 20 to 30 years.

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