NHIT Raises Rs 16,000 Cr To Acquire 900 Km Of Roads From NHAI
National Highways Infra Trust (NHIT) announced on Tuesday that it has successfully raised over Rs 16,000 crore through a combination of equity and debt to acquire nearly 900 km of road assets from the National Highway Authority of India (NHAI). This marks the largest monetization of assets by NHAI to date.
NHIT, an infrastructure investment trust (InvIT) sponsored by NHAI, has concluded its fund-raising through 'InvIT Round-3', acquiring a total of 889 kilometres of National Highway stretches at an enterprise value exceeding Rs 16,000 crore. This transaction ranks among the largest in the history of the Indian road sector.
The unit capital raised amounted to approximately Rs 7,272 crore from prominent domestic and international investors, while debt financing of around Rs 9,000 crore was secured from Indian lenders to facilitate the acquisition.
InvITs function as investment vehicles designed to pool capital from investors and allocate it towards income-generating assets over time.
Notably, the issuance of the letter of acceptance (LOA) for the highest-ever concession value through 'InvIT Round-3' occurred in February 2024.
Investor demand for NHIT units remained robust, with both existing and new investors participating enthusiastically. Foreign pension funds such as the Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board, along with domestic pension/provident funds, insurance companies, mutual funds, banks, and others, subscribed to the offering. NHAI also subscribed to 15 percent of the units at the same price.
The successful completion of the third round of monetisation brings the total realised value of NIT's InvIT transactions to Rs 26,125 crore.
NHIT holds a diversified portfolio comprising 15 operational toll roads spanning approximately 1,525 km across nine states. These roads have concession periods ranging from 20 to 30 years.
Canada Pension Plan Investment Board (CPPIB) announced a follow-on investment of Rs 1,820 crore in NHIT units as part of the fundraise through institutional placement, maintaining its 25 percent stake in NHIT.
NHIT's success underscores the efficacy of public-private partnership (PPP) models, as emphasised by Ministry of Road Transport & Highways Secretary Anurag Jain. NHAI Chairman Santosh Kumar Yadav expressed satisfaction with NHIT's accomplishment and highlighted its ongoing role in advancing the Indian roads sector.
Suresh Goyal, Managing Director of NHIT's investment manager, expressed gratitude to existing investors for their continued support and welcomed new partners in further strengthening NHIT's contribution to NHAI's initiatives for India's road sector development.
Since November 2021, NHIT has raised approximately Rs 12,000 crore through the first two rounds of monetisation, acquiring eight operational road assets spanning 636 km from NHAI. Units of NHIT were initially issued at Rs 101 in November 2021 and are listed on both BSE and NSE.
