Bharat Highways InvIT IPO Lists with 1% Premium

On 12-Mar-24, Bharat Highways InvIT IPO made a quiet entrance into the stock exchanges. On the Bombay Stock Exchange, the shares were opened at ₹101 reflecting a premium of 1% compared to the issue price of ₹100. Similarly, on the National Stock Exchange, Bharat Highways InvIT's listing price stood at ₹101.1 indicating a premium of 1.1% over the IPO price. Bharat Highways InvIT IPO opened from 28 February to 1 March, was valued at ₹2,500 crore and comprised a fresh issue of 25 crore shares with a price range set at ₹98 to ₹100 per share. Before its listing the grey market premium stood at +2 suggesting that the share price was trading at a premium of ₹2 in the grey market and hinting at an estimated listing price of around ₹102 per share.

Bharat Highways InvIT IPO Subscription and IPO Details

Bharat Highways Infrastructure Investment Trust IPO opened only to High Net Worth Individuals, Non-Institutional Investors and Qualified Institutional Buyers. By the close of the third day of subscription the IPO was subscribed 6.74 times. The public offering was oversubscribed by 8.92 times in the Institutional Investors’ category and by 6.93 times in the Other Investors’ category. It's important to note that there was no retail portion available in this IPO, meaning it was not open to retail investors. 

Check Bharat Highways INVIT IPO Subscribed 3.12 times

Bharat Highways INVIT IPO opened for subscription from 28 February 2024 to 1 March 2024. The price band for the IPO is set between ₹98 to ₹100 per share. The IPO consists solely of a fresh issue of shares aimed to raise ₹2,500 crore. Before the IPO Bharat Highways InvIT secured ₹826 crore from anchor investors on 27 February. Fresh issue comprises 25,00,00,000 shares (approximately 2,500 lakh shares) at the upper price band of ₹100 per share. There is no offer for sale component in this IPO. The IPO is listed on both the National Stock Exchange and the Bombay Stock Exchange on the mainboard. The funds raised through the IPO will primarily be used to provide loans to Project Special Purpose Vehicles (SPVs) for repayment and pre payment of their outstanding loans including accrued interest and a portion of the funds will be allocated for general corporate purposes. 

Overview about Bharat Highways INVIT

Bharat Highways Infrastructure Investment is an infrastructure investment trust (InvIT) focused on acquiring, managing and investing in a portfolio of infrastructure assets across India. Authorized by SEBI InvIT Regulations, the Trust primarily operates in the roads sector. Its portfolio consists of seven roads located in Punjab, Gujarat, Maharashtra,  Andhra Pradesh and Uttar Pradesh. These roads operate under a model called the Hybrid Annuity Model means that they are maintained and managed through agreements given by the National Highways Authority of India. Currently, these roads are owned and operated by Project Special Purpose Vehicles, wholly owned by GRIL. Additionally, the InvIT has a Right of First Refusal (ROFO) agreement with GRIL. This agreement grants the InvIT the priority to acquire certain other assets owned and developed by GRIL before they are offered to other parties.

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