NHAI-backed Raajmarg Infra IPO opens March 11: Should you bid?
What's the story
Raajmarg Infra Investment Trust (RIIT), a public InvIT sponsored by the National Highways Authority of India (NHAI), is gearing up for its first-ever public offering. The company has set a price band of ₹99-100 per unit for its upcoming ₹6,000 crore initial public offering (IPO). The offer will open for subscription from March 11 and close on March 13.
Investment opportunity
RIIT's IPO to pave way for public participation in highways
The RIIT's IPO marks a major milestone in encouraging public involvement in the development of national highway infrastructure. The public InvIT intends to tap into the monetization potential of National Highway assets while providing a high-quality, long-term investment vehicle mainly for retail and domestic investors. 75% of the offer size has been reserved for qualified institutional buyers with non-institutional investors getting 25%.
IPO details
Raajmarg Infra Investment Trust to debut on March 24
According to the Red Herring Prospectus (RHP), the total issue size of Raajmarg Infra Investment Trust's IPO is up to ₹6,000 crore. This is an increase from the previously planned ₹5,700 crore when draft papers were filed in January. The InvIT will make its stock market debut on March 24.
Management team
NHAI appoints investment manager for Raajmarg Infra Investment Trust
The NHAI had earlier appointed Raajmarg Infra Investment Managers Pvt. Ltd.(RIIMPL) as the investment manager for the Raajmarg Infra Investment Trust. RIIMPL is a joint venture with equity participation from top banks and financial institutions such as State Bank of India, Punjab National Bank, NaBFID, Axis Bank, Bajaj Finserv Ventures Ltd., and HDFC Bank, among others.