Upcoming IPO: National Infrastructure Trust Submits Draft Papers For Listing. Check Details

The trust, sponsored by Gawar Construction Ltd, in its DRHP said that the maiden offer will include a fresh issue of units coming up to Rs 1,200 crore, and an OFS of units worth up to Rs 400 crore

National Infrastructure Trust submitted its preliminary papers with the Securities and Exchange Board of India (SEBI) for a maiden listing worth Rs 1,600 crore. The infrastructure investment trust filed the draft papers for its initial public offering (IPO) with the capital markets regulator on Tuesday.

The trust, sponsored by Gawar Construction Ltd, in its draft red herring prospectus (DRHP) said that the maiden offer will include a fresh issue of units coming up to Rs 1,200 crore, and an offer-for-sale (OFS) of units worth up to Rs 400 crore. The OFS is being offered by the sponsor selling unitholder, reported PTI.

The draft papers showed that funds generated from the maiden listing would be utilised to provide loans to the project Special Purpose Vehicles (SPVs) for completing the pre-payment of external liabilities, partly or wholly from financial lenders. The issue will be made via the book-building process.

About 75 per cent of the offer will be available for institutional investors, while 25 per cent will be set aside for non-institutional investors. Gawar Construction will subscribe to 15 per cent of the overall post-issue capital unit of the trust to ensure compliance with the sponsor lock-in guidelines.

The draft documents further showed that the sponsor, Gawar Construction, operates a portfolio of 26 road projects on a hybrid annuity mode (HAM) with the NHAI. Out of these, 11 projects are completed, while 15 remain under construction.

Set up in September 2023, the trust was registered with SEBI earlier this year in March. The lead managers for the issue are SBI Capital Markets and HDFC Bank. The sole trustee of the trust is Axis Trustee Services and its units will be listed on the BSE and NSE.