The Capital Infra Trust IPO, an infrastructure investment trust (InvIT), opened for subscription today, January 7, 2025. With a total issue size of ₹1,578 crore, this IPO presents a significant opportunity for investors interested in infrastructure-backed securities. Below, we break down all the important details you need to know about this IPO.
Price Band and Grey Market Premium (GMP)
- Price Band: ₹99-₹100 per share.
- Grey Market Premium (GMP): As of now, the GMP remains at zero, indicating no premium over the listing price.
While GMP can serve as an indicator of market sentiment, it is highly volatile and should not be the sole basis for investment decisions. Investors are advised to analyze other factors before committing.
Key Details of the IPO
IPO Structure
- Fresh Issue: 10.77 crore shares, aggregating to ₹1,077 crore.
- Offer for Sale (OFS): 5.01 crore shares, aggregating to ₹501 crore.
Objectives of the IPO
The net proceeds from the fresh issue will be utilized to:
- Provide loans to Project Special Purpose Vehicles (SPVs) to repay external borrowings.
- Repay unsecured loans taken from the sponsor, Gawar Construction. This financial restructuring aims to enhance the operational efficiency of the InvIT and reduce the burden of external debt.
Lot Size and Investment Thresholds
- Minimum Lot Size: 150 shares.
- Minimum Investment:
- sNII (small Non-Institutional Investors): 14 lots (₹2,10,000).
- bNII (big Non-Institutional Investors): 67 lots (₹10,05,000).
Timeline of Key Dates
| Event | Date |
|---|---|
| Subscription Period | January 7–9, 2025 |
| Allotment Finalization | January 10, 2025 |
| Refunds Initiation | January 13, 2025 |
| Demat Account Share Credit | January 13, 2025 |
| Listing on BSE & NSE | January 14, 2025 |
Investors should track these dates to ensure a smooth process from subscription to trading.
Reservation Quota
- Qualified Institutional Buyers (QIB): 75% of the issue.
- Non-Institutional Investors (NII): 25% of the issue, catering primarily to high-net-worth individuals.
About Capital Infra Trust and Sponsor
Capital Infra Trust was established in September 2023 as an infrastructure investment trust (InvIT) under SEBI InvIT regulations. The trust focuses on acquiring, managing, and investing in revenue-generating infrastructure assets.
Sponsor: Gawar Construction
Gawar Construction, a renowned name in road and highway construction, sponsors the InvIT. Operating across 19 states in India, the company serves high-profile clients like the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI).
Key achievements include the successful execution of over 100 road projects since 2008, with a focus on building and managing critical transportation networks.
Portfolio Assets
Capital Infra Trust’s initial portfolio includes nine revenue-generating projects across Rajasthan, Haryana, Bihar, Himachal Pradesh, Uttarakhand, Karnataka, and Madhya Pradesh. These projects span 682.42 km, offering stable cash flows and robust growth potential.
Registrar and Lead Managers
- Book-Running Lead Managers: SBI Capital Markets and HDFC Bank.
- Registrar: KFin Technologies.
These entities bring their expertise in managing large-scale IPOs, ensuring seamless execution.
Investment Considerations
- Strengths:
- Backed by a strong sponsor with a proven track record.
- Revenue-generating assets provide stable returns.
- Strategic geographical distribution of projects.
- Risks:
- Zero GMP in the grey market indicates limited initial demand.
- Dependency on regulatory frameworks for InvIT operations.
Investors must evaluate these factors carefully before making their decisions.
Disclaimer: The information provided is for educational purposes and should not be considered as investment advice. Please consult with certified financial advisors before making investment decisions.
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