Bharat Highways InvIT IPO: Comprehensive Analysis
Company Profile: Bharat Highways InvIT is an infrastructure investment entity focusing on managing and investing in a portfolio of infrastructure assets across India, particularly in the highways sector. It is established under the regulations of SEBI InvIT. The Trust's initial portfolio comprises seven road assets operated on a Hybrid Annuity Model (HAM) basis across several states including Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh, covering approximately 497.292 km of constructed and operational roads.
IPO Overview: Bharat Highways Infrastructure Investment Trust (InvIT) is set to launch its IPO on February 28, 2024, aiming to raise ₹2,500 crore. This makes it one of the significant fundraising events in the year, showcasing a substantial investment opportunity in India's infrastructure sector. The IPO price band is set at ₹98 to ₹100 per share, and it is scheduled to close on March 1, 2024.
Financial Highlights: The Trust's revenue saw a decrease of -3.92%, while its Profit After Tax (PAT) experienced a significant rise by 738.34% for the fiscal year ending March 31, 2023, compared to the previous year. This dramatic increase in PAT demonstrates the Trust's potential for high profitability despite the revenue fluctuation.
Use of Proceeds: The net proceeds from the IPO are earmarked for providing loans to the Project SPVs for repayment or pre-payment of their respective outstanding loans, including any accrued interest and prepayment penalty, along with general corporate purposes. As of February 1, 2024, the Project SPVs had a cumulative outstanding external borrowing of ₹3,568.22 crore.
Market Strategy: Bharat Highways InvIT's market strategy is highlighted by its portfolio's strong foundation and strategic agreements such as the Right of First Offer (ROFO) with G R Infraprojects Limited (GRIL), providing it the first option to acquire certain road assets from GRIL. This positions the Trust advantageously for future growth and asset acquisition.
Ratings and Management: The Trust has received strong credit ratings, indicating its high creditworthiness and reliability. It is managed by GR Highways Investment Manager Private Limited and sponsored by Aadharshila Infratech Private Limited. The lead managers for the IPO include ICICI Securities Limited, Axis Capital Limited, HDFC Bank Limited, and IIFL Securities Limited
IPO GMP: As of now, there is no Grey Market Premium (GMP) information available for Bharat Highways InvIT IPO.
Conclusion: The Bharat Highways InvIT IPO presents a unique opportunity for investors interested in India's growing infrastructure sector. With a solid initial portfolio, strategic management, and strong credit ratings, the Trust is well-positioned for future growth. However, investors are advised to conduct their own research or consult with financial advisors before participating in the IPO.
Disclaimer: All information is provided for educational and informational purposes only. Data is fetched from publicly available sources such as the DRHP filed by the company and other reliable sources. The website or the author takes no guarantee for the accuracy of the data; however, we have tried our best to present accurate data to our readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.
Comments