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IPO

BondsIndia

AAA

Opening Date

17 Oct 2022

Closing Date

7 Nov 2022

Yield

Upto 8.05%

Tenure

Upto 25 Years

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Home   /   IPO   /   National Highway Infra Trust

IPO

National Highway Infra Trust

Ongoing IPO

National Highway Infra Trust

Opening Date
17 Oct 2022

BondsIndia

AAA

Closing Date
7 Nov 2022

bondsindia

Time to close

Yield
Upto 8.05%

Tenure
Upto 25 Years

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IPO Details

IPO Details

Issue Size (Including Green Shoe Option) ₹ 1,500 crores
Face Value ₹ 1000
Coupon 7.90%
Minimum Number of Bonds 10
Lot Size (Multiplier) 1
Allotment Date (Tentative) 25 Oct 2022
Listing Date (Tentative) 27 Oct 2022
Exchange Bid Time (24 Hours) 10:00 to 17:00

Documents attached

Information Memorandum

 

BondsIndia
Product Note

 

BondsIndia

*Allotment on first come first serve basis

 

ISSUE STRUCTURE

Series
I
Tenor
Upto 25 Years
Face value
1000
Minimum Application 
10,000 (10 NCDs)
In Multiples of thereafter (₹) 
1,000 (1 NCD)
"Coupon (%) for NCD Holders in Category I, Category II, Category III & Category IV"
7.90% p.a. Payable Semi-Annually
"Effective Yield (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV"
8.05%
Frequency o1 Interest Payment
Semi-Annual
Maturity (from the Deemed Date o1 Allotment)
Upto 25 Years
Redemption Date/ Redemption Schedule **
"Staggered Redemption by Face Value for each respective STRPP as per “Principal Redemption Schedule and Redemption Amounts”

How to invest in the NATIONAL HIGHWAYS INFRA TRUST IPO?

Application process on BondsIndia platform is simple and seamless.

•Click on the details of the company on the home page

•Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details

•Then, confirm the quantity and price and select payment method.

•That’s all folks , bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

Why choose BondsIndia?

BondsIndia is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a Technology based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose BondsIndia for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for NATIONAL HIGHWAYS INFRA TRUST IPO on BondsIndia’s website.

Place your bid in three simple steps:

1

Key in Basic Details

2

Choose the IPO Series

3

Place the bid

How to invest in the
NATIONAL HIGHWAYS INFRA TRUST ?

Application process on BondsIndia platform is simple and seamless.

  • Click on the details of the company on the home page
  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank, and Demat details
  • Then, confirm the quantity and price and select a payment method.
  • That’s all folks, bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

AUM

7760.3366 Crs

GNPA

-NA-

NPA

-NA-

  • NATIONAL HIGHWAYS INFRA TRUST is a registered infrastructure investment trust under the InvIT Regulations. They currently have a right to toll, operate and maintain a portfolio of five Initial Toll Roads (defined below) in the Indian states of Gujarat, Rajasthan, Telangana and Karnataka, and intend to toll, operate and maintain a portfolio of three Target Toll Roads (defined below) in the Indian states of, Telangana, Maharashtra, Uttar Pradesh and Madhya Pradesh under the Toll Operate Transfer (“TOT”) model conceived by NHAI. These Toll Roads are operated and maintained pursuant to concessions granted by the NHAI. The Initial Toll Roads comprise five stretches spanning a total length of approximately 389 kms and the Target Toll Roads comprise three stretches spanning a total length of approximately 246 kms There Sponsor is NHAI, an autonomous authority of the GoI under the MoRTH constituted on June 15, 1989 by an Act of the Indian Parliament titled – The National Highways Authority of India Act, 1988 (the “NHAI Act”). NHAI was operationalised in February 1995 with the appointment of a fulltime Chairman and other members of the board. The functioning of NHAI is governed by the NHAI Act and the rules, and regulations framed thereunder.
-NA-
  • Experienced sponsor coupled with importance to the GoI: The NHIT was set up by the NHAI in October 2020 as an infrastructure investment trust to monetise its road assets. The InvIT was authorised by the Union Cabinet and announced by the Finance Minister in Union Budget 2021. As a principal vehicle proposed for the monetisation of road assets in the country under the National Asset Monetisation Pipeline, InvIT holds significant importance for the GoI. NHAI is the nodal agency responsible for the development and maintenance of national highways. It was constituted u/s 3(1) of the National Highways Authority of India Act, 1988, and commenced operations in February 1995 to develop, maintain, and manage national highways in the country. The NHAI is vested with executive powers for developing national highways in India by MoRTH.

    Borrowings have decreased in last few quarters. As a result, gearing has increased from 4 times on March 31, 2020 to 2.8 times as of December 31, 2021.
  • Geographically-diversified portfolio of eight toll road projects:- Eight road project assets, namely, the Palanpur-Abu Road, Abu Road-Swaroopganj, Chittorgarh-Kota, Kothakota-Kurnool, and Belgaum-Kagal (above five assets under round-1), Agra Bypass, Borkhedi-Kelapur, and Shivpuri-Jhansi (three assets under round-2) have been transferred to InvIT. The portfolio projects are located at diversified geographical locations spread across different states – Gujarat, Rajasthan, Telangana, Andhra Pradesh, Karnataka, Uttar Pradesh, Maharashtra, and Madhya Pradesh. This significantly mitigates the InvIT’s business risk by reducing the potential impact of any region-specific economic slowdown or force majeure events, or, with respect to specific risks of individual projects.
  • Concession agreement for 30 years (existing projects) and 20 years (additional projects), providing long-term revenue visibility:- The NHIT holds the entire shareholding in the project assets through its 100% subsidiary, ie, the NHIPPL, which has entered into a 30-year CA with the NHAI for O&M of these assets on a TOT basis, which provides long-term revenue visibility. The required concession fees for all five road assets have been remitted, and accordingly, the NHAI has declared the appointed date for all the road assets as December 16, 2021; the toll collection has also commenced. For the additional three assets, the NHIPPL has also entered into a 20-year CA with the NHAI on a TOT basis on September 26, 2022, which provides long-term revenue visibility.
  • Comfortable debt coverage at the InvIT level along with the presence of DSRA:- NHIT has sanctioned a debt of ₹2,000 crore for a period of 20 years towards round-1, of which it has raised ₹1,480 crore up to March 2022. Besides, the InvIT has raised a capital of ₹6,011 crore. The proceeds have been utilised for the payment of concession fee to the NHAI, as specified in the CA. Furthermore, with respect to the additional three assets transferred to the InvIT, the NHIT has plans to raise a debt of approximately ₹2,350 crore along with a unit capital of around ₹1,405 crore to be utilised for the payment of concession fees to the NHAI, as specified in the CA, undertaking initial improvement works, DSRA creation and transaction expenses. The NHIT has received bids from investors aggregating to ₹1,294 crore towards the planned raise of unit capital. The NHIT has also availed a bridge loan of ₹1,500 crore for payment of concession fee to the NHAI, which will be repaid from the proposed non-convertible debenture (NCD) issuance. Apart from the above debt, the InvIT is also planning to raise debt in a phased manner up to 15 years of the concession period for meeting the MM expenses in the project highways as per its requirements.
  • Inherent O&M and MM risks along with interest rate risk: The underlying assets (all eight assets) are exposed to the inherent routine and periodic maintenance to be undertaken over the concession period. CARE Ratings understands that the O&M (both, routine and periodic maintenance) of the project highways under the InvIT will be carried out based on a pre-agreed mechanism, in which the project manager will be responsible for the O&M, and the same will be captured under the appropriate InvIT agreements. For both, routine and periodic maintenance, CARE Ratings has primarily relied on the O&M cost assumptions, as specified by the technical consultant for the respective project stretches.
  • Inherent traffic growth risk: The toll revenues are a function of toll rates and traffic volumes. Traffic volumes are directly or indirectly dependent on multiple factors, including the location of the road project (connecting areas and their commercial importance), growth in the automobile sector, affordability of automobiles, the quality, convenience and travel efficiency of alternative routes outside the network of toll roads, etc. In the absence of actual traffic data for the past years, CARE Ratings has relied on traffic studies conducted by consultants commissioned by the NHAI and the data available for the last three years from the earlier toll contracts awarded by the NHAI on the project stretches. However, any divergence between the estimates considered and the actual traffic flow on the stretches and its bearing on the debt coverage metrics will be a key rating monitorable
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N/A stands for Not Applicable

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