Infrastructure investment trust Bharat Highways InvIT has submitted a draft prospectus to capital markets regulator Sebi to raise Rs 2,000 crore in an initial public offering (IPO).
According to the draft Red Herring Prospectus (DRHP), proceeds from the offering will be used to repay certain loans taken out by the project SPV (Special Purpose Vehicle) and for general corporate purposes.
These SPV projects include Porbandar-Dwarka Expressway, Varanasi-Sangam Expressway, GR Sangli-Solapur Expressway, GR Akkalkot-Solapur Expressway, GR Phagwara Expressway and GR Gundugolanu-Devarapalli Expressway.
Bharat Highways InvIT was formed in August 2022 to acquire 100% of the SPVs of each project from GR Infrastructure Ltd, including GDDHPL, of which InvIT proposed to acquire an initial 49% stake.
According to the draft document, Bharat Highways InvIT (Infrastructure Investment Trust) will issue units totaling up to Rs 2,000 crore.
The offering will be made through a book-building process, of which 75% of the shares will be offered to institutional investors and the remaining 25% will be offered to non-institutional investors.
The sponsor for the offering, Lokesh Builders Pvt Ltd, part of GR Group, will subscribe for 15% of InvIT’s post-offering unit capitalization to comply with sponsor lock-up requirements, which will be reduced in size post-offering.
The total revenue of the SPV group for the financial years ending March 31, 2022, 2021 and 2020 is Rs 4,472.3 crore, Rs 1,600.1 crore, Rs 2,170.3 crore and Rs 3,092.7 crore, respectively.
ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities are the lead managers of the books on the offering.
(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)
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