Bharat Highways InvIT, established by GRIL (G R Infraprojects Limited) and registered with SEBI on August 3, 2022, is an infrastructure investment trust in India focused on managing and investing in infrastructure assets as per SEBI InvIT Regulations.
The Trust's investment portfolio comprises seven road projects spread across various Indian states, including Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These projects are managed on a Hybrid Annuity Model (HAM) basis, with the operational and maintenance responsibilities handled based on concession agreements with the National Highways Authority of India (NHAI). The projects are owned and operated through Project SPVs, all of which are subsidiaries of GRIL.
Its sponsor, Aadharshila Infratech Private Limited, is renowned in transportation engineering and brings expertise in surveys, pavement design, and material testing with a NABL-accredited laboratory for chemical, mechanical, and non-destructive testing.
The Associate, NMHPL, adds value with over six years of experience in road and highway project construction. Together, they ensure Bharat Highways InvIT's commitment to high-quality infrastructure development, leveraging their expertise in material testing and project execution to meet SEBI's stringent eligibility criteria for infrastructure investment.
Regarding financial stability and credibility, Bharat Highways InvIT has been recognised with high provisional ratings from leading rating agencies in India. Crisil Ratings Limited has assigned it a CRISIL AAA/Stable rating, which has been reaffirmed, indicating a high level of creditworthiness. Similarly, it has received a provisional rating of CARE AAA, Stable from CARE Ratings Limited, and IND AAA/Stable from India Ratings and Research, further attesting to its financial stability and promising outlook.
Industry Outlook
- The infrastructure sector has seen significant growth with $32.08 billion in FDI equity inflow for construction activities from FY 2001 to September 2023, fueled by government reforms and public investment.
- Announced in FY 2020, the National Infrastructure Pipeline (NIP) plans to invest over ₹100 trillion in infrastructure over five years, aiming for a total investment of ₹111 trillion with 8,964 projects under implementation or development.
- Of the NIP's total capital outlay, 55% of projects are under implementation, focusing on transport (43.5%), energy (20.4%), social infrastructure (13.9%), and commercial infrastructure (4.6%).
Bharat Highways InvIT IPO Details
Bharat Highways InvIT IPO Date
The IPO of Bharat Highways InvIT is open for subscription from February 28, 2024, to March 1, 2024.
Bharat Highways InvIT IPO's Price Band
Bharat Highways InvIT’s IPO is a fresh issue IPO of up to ₹2,500 crore. It is a book-building issue. The price range is set between ₹98 to ₹100 per share.
Bharat Highways InvIT IPO’s Lot Size
The lot size for Bharat Highways InvIT’s IPO is 150 shares with a minimum investment of ₹15,000.
Bharat Highways InvIT IPO’s Objectives
The Bharat Highways InvIT aims to achieve a comprehensive set of objectives and purposes within the framework of applicable laws, as outlined below:
- Raise funds in compliance with applicable laws to support the InvIT's goals.
- Invest and reinvest in government securities, money market instruments, and similar assets as SEBI InvIT Regulations allow.
- Manage funds awaiting investment or distribution and maintain reserves for anticipated obligations within SEBI guidelines.
- Distribute proceeds to Unitholders as outlined in the Trust Deed.
- Undertake necessary actions for achieving investment objectives, including working through agents or the Investment Manager.
- Engage in activities permitted under applicable laws to fulfil the InvIT's investment objectives.
Peer Details
The following is a listed peer company of Bharat Highways InvIT in India:
- IRB InvIT Fund
How To Check the Allotment Status of Bharat Highways InvIT’s IPO?
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- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Bharat Highways InvIT
Registered office: Novus Tower, Second Floor, Plot No. 18, Sector 18, Gurugram, Haryana 122 015, India
Contact Person: Mohnish Dutta (Compliance Officer)
Phone: +91 85888 55586
E-mail: cs@bharatinvit.com
Financial Performance of Combined SPVs
| Particulars (Amount in ₹ million) | For the period Ended on September 30, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from operations | 3,680.65 | 15,094.87 | 15,857.02 |
| Debt to Equity Ratio (x) | 2.99 | 3.36 | 6.16 |
| Profit After Tax (PAT) | 1,013.53 | 5,270.47 | 628.68 |
| Total Borrowings | 36,833.05 | 38,159.78 | 38,463.36 |
| Cash & Cash Equivalents | 397.16 | 612.58 | 2,113.68 |
| Total Assets | 59,167.98 | 60,562.79 | 55,363. 95 |
| Ongoing Projects (₹ in billion) | 1,500 | - | - |
Know before investing
Strengths
4Bharat Highways InvIT owns seven assets across five Indian states, spanning 497.292 km on national networks, ensuring stable, risk-free revenue and predictable long-term cash flows.
Positioned in India's vital roads sector, backed by substantial government investment, including a 25% budget increase in 2023-24 to ₹2.7 trillion for infrastructure development.
Utilises the sponsor's and NMHPL's extensive experience in road project management, leveraging over six years of expertise in engineering, procurement, and construction for competitive advantage.
Risks
4Established on August 3, 2022, Bharat Highways InvIT lacks a proven track record, making future growth assessments challenging.
The acquisition of Project SPVs is subject to specific conditions, introducing uncertainties in the trust's expansion plans.
The trust's ability to acquire new, profitable infrastructure assets is crucial. Failure in this area could adversely affect its financial health and distribution capabilities.
Bharat Highways InvIT relies entirely on fixed annuity payments from NHAI. Any disruption in these payments could negatively impact its financial performance.
