Capital Infra Trust InvIT IPO Set to Raise ₹1,578 Crores: Opens January 7
Backed by Gawar Construction, listing set for January 14, 2025
BILKULONLINE
Ahmedabad, Jan 3: 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.
Capital Infra Trust Invit opens for subscription on January 7, 2025 and closes on January 9, 2025. The allotment for the Capital Infra Trust Invit is expected to be finalized on Friday, January 10, 2025. Capital Infra Trust Invit will list on BSE, NSE with tentative listing date fixed as Tuesday, January 14, 2025.
Capital Infra Trust Invit price band is set at ₹99 to ₹100 per share.
The minimum lot size for an application is 150. The minimum amount of investment required by retail investors is ₹15,000. The minimum lot size investment for sNII is 14 lots (2,100 shares), amounting to ₹2,10,000, and for bNII, it is 67 lots (10,050 shares), amounting to ₹10,05,000.
IPO Highlights:
Price Band: ₹99 to ₹100 per share.
Issue Size: ₹1,578 crores.
Fresh Issue: ₹1,077 crores.
Offer for Sale: Up to 5,01,00,000 equity shares.
Investor Quotas:
Retail Investors: 0%
Qualified Institutional Buyers (QIB): 75%
High Net-Worth Individuals (HNI): 25%
Allotment Date: January 10, 2025.
Listing Date: January 14, 2025 (on both BSE and NSE).
Company’s Financial Overview:
Capital Infra Trust’s financial performance reflects fluctuating revenue and profits over recent years:
Revenue:
2022: ₹1,908.15 crores.
2023: ₹2,033.09 crores.
2024: ₹1,485.09 crores.
Specifically for 2024: ₹1,543.51 crores, compared to ₹2,518.92 crores in 2023.
Profit:
2024: ₹125.77 crores, compared to ₹497.19 crores in 2023.
While the financials indicate a decline, the company’s solid operational foundation and future growth potential make this IPO attractive for long-term investors.
Capital Infra Trust was founded in 2023, Capital Infra Trust is an infrastructure investment trust sponsored by Gawar Construction Limited, a company with a robust track record in infrastructure development.
Sponsor’s Key Achievements:
- Specializes in constructing roads and highways across 19 states in India, working with government organizations like:
National Highways Authority of India (NHAI)
Ministry of Road Transport and Highways (MoRTH)
Mumbai Metropolitan Region Development Authority (MMRDA)
Central Public Works Department (CPWD)
Since its establishment in 2008, Gawar Construction Limited has:
Completed 100 infrastructure projects.
Undertaken 26 projects under the Hybrid Annuity Model (HAM) for NHAI.
On November 11, 2024, the Trust received a ‘Provisional CRISIL AAA/Stable’ rating from CRISIL Ratings Limited for its Non-Convertible Debentures (NCDs) and proposed long-term bank loan facility, underscoring its financial stability.
The Trust operates and manages its portfolio of assets through Project Special Purpose Vehicles (SPVs), ensuring focused and efficient execution.
Objects of the IPO:
Repayment of Borrowings:
Providing loans to Project SPVs to repay or pre-pay external borrowings, including accrued interest and prepayment penalties.
Repayment of Sponsor Loans:
Providing loans to Project SPVs for the repayment of unsecured loans obtained from the Sponsor.
IPO Lead Managers (Merchant Bankers):
SBI Capital Markets Limited.
HDFC Bank Limited
On Friday, January 3, 2025, Manish Satnaliwala (CEO, Capital Infra Trust), Amit Kumar (CFO, Capital Infra Trust), and Sanjay Sethia (Senior Vice President, SBI Capital Markets) held a detailed media briefing in Ahmedabad. During the interaction, they elaborated on the company’s strategy, the IPO’s objectives, and its significance in strengthening India’s infrastructure development.
Investment Insight:
While the financials exhibit a decline in revenue and profit in recent years, the Trust’s strong backing by Gawar Construction Limited, its diversified project portfolio, and its robust rating highlight its long-term potential. Investors are encouraged to consider this IPO as part of a long-term investment strategy.
Disclaimer: Readers are advised to carefully study the IPO prospectus and consult their financial advisors before making any investment decisions.
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