Capital Infra Trust IPO to open on January 7; here’s size, price band and other key details

Capital Infra Trust, formerly known as National Infrastructure Trust, is set to launch its initial public offering (IPO) on January 7, 2025, marking the first infrastructure investment trust (InvIT) of the new year. Capital Infra Trust IPO will be open to both institutional and non-institutional investors and will close for bidding on January 9.

Capital Infra Trust IPO price band has been set at ₹99 to ₹100 for the upcoming IPO. The application requires a minimum lot size of 150, with retail investors needing to invest at least ₹15,000.

The issue involves a fresh issuance of 10.77 crore shares amounting to ₹1,077.00 crore, along with an offer for sale of 5.01 crore shares totaling ₹501.00 crore.

The issue is being made through the Book Building process, wherein not more than 75% of the Offer shall be available for allocation on a proportionate basis to Institutional Investors, and not less than 25% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors.

The net proceeds are intended to be used for: (i) offering loans to the Project SPVs to repay or prepay, either partially or fully, their existing loans, including accrued interest and any prepayment penalties; and (ii) providing loans to the Project SPVs to settle unsecured loans obtained by them from the Sponsor.

Lead Managers for the issue are SBI Capital Markets Limited, HDFC Bank Limited. Meanwhile, registrar to the issue is KFin Technologies Limited. Axis Trustee Services Limited has been appointed as the Trustee of the upcoming IPO.

Gawar Investment Manager Private Limited has been appointed as the Investment Manager, and Gawar Construction Limited has been appointed as the Sponsor.

About the company

Capital Infra Trust, founded by Gawar Construction in September 2023, serves as an infrastructure investment trust. Its primary objective is to invest in, manage, and acquire nine completed, revenue-generating infrastructure assets spanning approximately 682.43 kilometers.

These assets are operated by project-specific special purpose vehicles (SPVs) across seven states in India. As of September 2024, the portfolio has a weighted average residual concession period of 11.7 years.

The revenue generated from operations of the initial portfolio assets amounted to ₹1,485 crore in fiscal year 2024, marking a significant decline from ₹2,033 crore in the previous year. Similarly, profit for the same period experienced a steep drop to ₹125.8 crore, compared to ₹497.2 crore in fiscal year 2023.