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NHAI InvIT files for Rs 1500 crore NCD Issue


NHAI InvIT files for Rs 1500 cr

Chennai: The draught prospectus for a public offering of secured, rated, listed, redeemable, non-convertible debentures by National Highways Infrastructure Trust, a registered infrastructure investment trust under the InvIT Regulations, sponsored by NHAI (an autonomous authority of the GoI), has been filed.

According to the Toll Operate and Transfer model developed by NHAI, NHIT currently owns, operates, and maintains a portfolio of five initial toll roads totaling 389 km in length in the states of Gujarat, Rajasthan, Telangana, and Karnataka. It also plans to toll, operate, and maintain three additional toll roads totaling 246 km in Telangana, Maharashtra, Uttar Pradesh, and Madhya Pradesh.

It is suggested that the Net Proceeds be used for general corporate purposes, repayment of the NHIT bridge loan facility (if used, if any), and injection of debt into the Project SPV of NHIT. The infusion of cash will help the SPVs fulfil their contractual obligations and enable the Project SPV to get the requisite concession rights.

The issue will consist of up to 15,000,000 NCDs and be for an amount totaling up to Rs 1,500 crore (hence referred to as the “Issue”) (consisting of 15,000,000 STRPP A, 15,000,000 STRPP B and 15,000,000 STRPP C). The three STRPP will have three distinct face values, three different maturities, and two different redemption options: par and staggered.

As of the quarter that ended on June 30, 2022, the unit capital, which consists of 595.20 million units, was $6,011.52 crore.


For as long as the relevant Concession Agreement permits—20 or 30 years—Project SPV shall have the authority to collect tolls. The National Highway Authority of India (NHAI) has a history of operational excellence and expansion. It has been given the responsibility of developing, maintaining, and managing 50,329 km of national highways as part of the National Highways Development Project, in addition to smaller initiatives.

The NCDs must be listed within 6 (six) Working Days of the issue closing date, and the minimum subscription for a public debenture offering is 75% of the base issue amount.

JM Financial Limited, A.K. Capital Services Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Trust Investment Advisors Private Limited are the lead managers for the issue. CARE Ratings Limited and India Ratings and Research Private Limited have been chosen as the credit rating companies. KFin Technologies Limited is acting as the Issue’s Registrar.

In terms of traffic volume and economic impact on the country, road transportation dominates the country of India. With a total length of 6.2 million kilometres, India has the second-largest road network in the world. National highways make up around 2% of the country’s road network as of FY19 yet transport about 40% of all traffic.