NHAI Selects 4 Banks to Manage ₹8,000 Crore InvIT IPO

As per the Moneycontrol report, the National Highways Authority of India has appointed 4 investment banks to manage the initial public offering (IPO) of its new infrastructure investment trust.  

The banks selected are SBI Capital Markets, Axis Capital, ICICI Securities, and Motilal Oswal. This will be NHAI’s first InvIT offer opened to retail investors. The issue is being prepared for a launch around mid-2026 or slightly later. 

Planned Fundraising 

The authority is aiming to raise about ₹8,000 crore, which works out to roughly $890-$900 million. If the full amount is raised, the offer would be larger than the PowerGrid InvIT IPO of May 2021, which brought in ₹7,735 crore. That remains the biggest InvIT listing in the market so far. 

Existing InvIT Structure 

This proposed InvIT will sit alongside NHAI’s current private trust, National Highways Infra Trust. NHIT is anchored by CPP Investments and Ontario Teachers’ Pension Plan. 

InvITs have been used by the authority as one of the ways to bring in long-term capital for highway assets, operating alongside the toll-operate-transfer framework. 

Monetisation So Far 

NHAI completed its 4th round of InvIT monetisation in March. In that round, road assets valued at ₹18,380 crore, based on enterprise valuation, were transferred to NHIT. It is the largest InvIT-linked monetisation recorded in the Indian road sector.  

Across the 4 rounds carried out so far, NHAI has raised more than ₹46,000 crore. NHIT itself has raised about ₹8,340 crore since inception. 

Read More: Jio Platforms IPO: Reliance Industries Said to Begin Work on Draft Prospectus! 

Conclusion 

The planned ₹8,000 crore InvIT IPO is another addition to the flow of infrastructure trusts entering the market and selects SBI Capital Markets, Axis Capital, ICICI Securities, and Motilal Oswal as investment bankers. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

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