Capital Infra Trust collects Rs 703 crore from anchor investors; IPO opens for subscription

 Capital Infra Trust, an infrastructure investment trust (InvIT) sponsored by Gawar Construction, has garnered Rs 703 crore from anchor investors, an update with the exchange showed.

The anchor round saw participation from a host of investors such as domestic mutual funds and insurance companies, according to a circular uploaded on the BSE's website on Monday.

Quant Mutual Fund (MF), HDFC MF, Axis MF, Kotak MF, Baroda BNP Paribas MF, ICICI Prudential MF, NPS Trust, Nuvama Wealth, SBI Life Insurance, HDFC Life Insurance, Max Life Insurance, Pico Capital and Navi Finserv, have been allotted units in the anchor round, it showed.

Going by the circular, the Gurugram-based Capital Infra Trust has allotted 7.10 crore units to 27 entities at Rs 99 per unit, aggregating the transaction size to Rs 702.99 crore.

The issue with a price band of Rs 99-100 per unit will open for public subscription on January 7 and conclude on January 9.

The company's IPO is a combination of a fresh issue of units aggregating up to Rs 1,077 crore and an Offer For Sale (OFS) of units valued up to Rs 501 crore by the sponsor selling unitholder Gawar Construction Ltd. This takes the total size to Rs 1,578 crore.

The public issue of Capital Infra Trust (formerly National Infrastructure Trust) is set to become the first InvIT IPO of 2025.

According to its prospectus, the proceeds from the fresh issue will be used to provide loans to the project Special Purpose Vehicles (SPVs) to clear external borrowings. The funds will also be used to give loans to project SPVs for debt repayment of unsecured loans from the sponsor.

The sponsor, Gawar Construction, is engaged in the construction of road and highway projects across 19 states in India for various government/semi-government bodies and statutory authorities, including the NHAI, Ministry of Road Transport and Highway, Mumbai Metropolitan Regional Development Authority and Central Public Works Department.

Established in September 2023, Capital Infra Trust was set up to carry out activities as an InvIT and make investments as per Sebi's InvIT norms.

SBI Capital Markets Ltd and HDFC Bank are the book-running lead managers, while KFin Technologies is the registrar to the issue. Axis Trustee Services has been appointed as the sole trustee of the trust.

The units of the company will be listed on the BSE and the NSE.