National Infrastructure Trust, an infrastructure investment trust (InvIT) sponsored by Gurgaon-based highway developer Gawar Construction Ltd, has filed for a Rs 1,600 crore ($190.6 million) initial public offering.
The InvIT, which does not have any operational assets as of now, has filed its draft papers with the Securities and Exchange Board of India (SEBI). The InvIT was set up in September last year and registered with the capital markets regulator only in March this year.
The IPO comprises a fresh issue of units to raise Rs 1,200 crore and an offer for sale of Rs 400 crore by Gawar Construction, according to the draft prospectus.
The money to be raised via the fresh issue will be used to provide loans to Gawar's project special purpose vehicles to retire outstanding debt.
Gawar Construction was established in 1987 by co-founders Rakesh Kumar and Ravinder Kumar as a partnership firm and reconstituted as a limited company in 2008. It specialises in infrastructure projects like expressways, highways, tunnels and bridges. According to its website, the company has constructed more than 12,000 lane kms of roads across the country.
Gawar Construction has a portfolio of 26 road projects on a hybrid annuity model (HAM). Of these, 11 are completed projects, including five assets acquired from Sadbhav Infrastructure Project Ltd, and 15 are under-construction projects.
National Infrastructure Trust intends to acquire and manage nine completed and revenue-generating assets, aggregating to about 683.875 km. Three road assets are in Haryana, Rajasthan, Bihar, Himachal Pradesh, Madhya Pradesh, Karnataka and Uttarakhand.
HDFC Bank and SBI Capital Markets are managing the IPO.
