Capital Infra Trust InvIT IPO: Should you Apply or Not?
Capital Infra Trust InvIT is a book built issue of Rs 1,578.00 crores. The issue is a combination of fresh issue of 10.77 crore shares aggregating to Rs 1,077.00 crores and offer for sale of 5.01 crore shares aggregating to Rs 501.00 crores.
About Capital Infra Trust InvIT
Capital Infra Trust, established in 2023, operates as an infrastructure investment trust sponsored by Gawar Construction Limited, a company renowned for building roads and highways across 19 states in India. It collaborates with prominent government bodies such as NHAI, MoRTH, MMRDA, and CPWD. On November 11, 2024, the Trust received a ‘Provisional CRISIL AAA/Stable’ rating from CRISIL Ratings Limited for its NCD(s) and proposed long-term bank loan facility.
Gawar Construction Limited, since 2008, has completed 100 projects and currently manages 26 projects under the Hybrid Annuity Model (HAM) for the National Highways Authority of India (NHAI). The assets and portfolio of Capital Infra Trust are owned, managed, and operated through Project SPVs. Financially, the firm’s revenue has shown fluctuations over the years, with figures of ₹1,908.15 crore in 2022, ₹2,033.09 crore in 2023, and ₹1,485.09 crore in 2024.
IPO Subscription Period
- Open Date: January 7, 2025
- Close Date: January 9, 2025
- Allotment Date: January 10, 2025
- Listing Date: January 14, 2025
- Stock Exchanges: BSE and NSE
Pricing Details
- Price Band: ₹99 – ₹100 per Share
- Face Value: ₹10 per Share
- Minimum Lot Size: 150 shares
- Investment Requirement:
- Retail Investors: Minimum ₹15000 (150 shares)
- Small Non-Institutional Investors (sNII): 14 lots (2100 shares) – ₹210000
- Big Non-Institutional Investors (bNII): 67 lots (10050 shares) – ₹1005000
Reservation Structure
- Anchor Investors: 0%
- Qualified Institutional Buyers (QIB): 75%
- Non-Institutional Investors (NII): 25%
- Big NII (bNII): 15%
- Small NII (sNII): 10%
- Retail Investors: 0% (0 shares)
Key Dates and Timeline
- IPO Open Date: Tuesday, January 7, 2025
- IPO Close Date: Thursday, January 9, 2025
- Basis of Allotment: Friday, January 10, 2025
- Initiation of Refunds: Monday, January 13, 2025
- Credit of Shares to Demat: Monday, January 13, 2025
- Listing Date: Tuesday, January 14, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on January 9, 2025
Book Running Lead Managers
Capital Infra Trust InvIT has appointed prominent financial institutions as book-running lead managers for the IPO:
- SBI Capital Markets Ltd
- HDFC Bank Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Financial Highlights
- Revenue: In FY22 revenue was ₹1981 crores, in FY23 it was ₹2518 and in FY24 it is ₹1543 crores.
- Profit after Tax (PAT): FY22- ₹126 crore, FY23- ₹498 crores and FY24- ₹126 crores.
IPO Objectives
The Company intends to utilize the Net Proceeds for the following purposes:
- Providing loans to the Project SPVs for repayment/pre-payment of external borrowings, in part or in full from the financial lenders (including any accrued interest and prepayment penalty); and
- Providing loans to the Project SPVs for repayment of unsecured loans availed by the Project SPVs from the Sponsor.
Subscription Status (As of January 08, 2025)
- Retail: -
- QIB: -
- NII: -
- Overall Subscription: –
Recommendation
We recommend investors to apply as the company is Trust Investment firm which takes our money and invests in projects to earn returns. From total revenue they will distribute fixed percentage of revenue as dividend to the investors. It will be great for investors as a fixed income in their portfolio.