NHIT Plans $2.4 Billion Highway Fundraise
ROADS & HIGHWAYS

NHIT Plans $2.4 Billion Highway Fundraise

The National Highways Infrastructure Trust (NHIT), sponsored by the National Highways Authority of India (NHAI), is set to raise over Rs 200 billion from both domestic and foreign investors in the coming weeks to acquire 11 operational road assets. This round is not only the trust’s fourth fundraise but also its largest to date.

According to official sources, approximately Rs 100 billion will be raised through the issuance of fresh equity units, supported by a matching debt component. The final amount will be determined by the book building process, with a portion of the equity raised through new subscriptions from existing unitholders, proportional to their current holdings.

A key highlight of this issue is the anticipated participation of the Employees’ Provident Fund Organisation (EPFO) as an equity investor for the first time. Canadian funds Ontario and CPP Investment Board Private Holdings already hold a 25 per cent stake each in the trust, while NHAI and SBI AMC hold 15.48 per cent and 9.34 per cent respectively. With the latest acquisition round, NHIT is expected to attract additional equity investors, marking a significant step in its evolving investment strategy.

In related developments, Adani recently secured NHAI’s new TOT asset with a bid of approximately Rs 16.92 billion. Under the NHIT model, the trust will operate and maintain the highways for a predetermined period, collect toll revenues, and repay investors. This approach, along with the toll-operate-transfer (TOT) model where private investors manage NHAI assets under long-term leases, is designed to ease the financing burden on NHAI. Funds raised through InvIT monetisation are primarily used to service and repay NHAI’s debt.

To date, NHIT has raised a cumulative Rs 259 billion through three fundraise rounds and has acquired 15 road stretches spanning 1,525 km across nine states including Uttar Pradesh, West Bengal, Assam, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, and Telangana. The latest asset acquisitions will add road stretches from Karnataka, Andhra Pradesh, Uttar Pradesh, Uttarakhand, and Chhattisgarh.

Looking ahead, NHAI is targeting a monetisation raise of approximately Rs 540 billion in FY24-25 through InvIT, TOT, and project-based financing. In the current financial year, apart from regular debt servicing, NHAI has repaid around Rs 560 billion through these initiatives. The agency’s budgetary support for the next financial year stands at Rs 1.7 trillion, with the capital expenditure for building highways set at Rs 2.72 trillion for FY26.

This significant fundraise by NHIT not only underscores the growing investor confidence in India’s infrastructure sector but also marks a strategic move to further monetise and develop the nation’s highway assets.

The National Highways Infrastructure Trust (NHIT), sponsored by the National Highways Authority of India (NHAI), is set to raise over Rs 200 billion from both domestic and foreign investors in the coming weeks to acquire 11 operational road assets. This round is not only the trust’s fourth fundraise but also its largest to date. According to official sources, approximately Rs 100 billion will be raised through the issuance of fresh equity units, supported by a matching debt component. The final amount will be determined by the book building process, with a portion of the equity raised through new subscriptions from existing unitholders, proportional to their current holdings. A key highlight of this issue is the anticipated participation of the Employees’ Provident Fund Organisation (EPFO) as an equity investor for the first time. Canadian funds Ontario and CPP Investment Board Private Holdings already hold a 25 per cent stake each in the trust, while NHAI and SBI AMC hold 15.48 per cent and 9.34 per cent respectively. With the latest acquisition round, NHIT is expected to attract additional equity investors, marking a significant step in its evolving investment strategy. In related developments, Adani recently secured NHAI’s new TOT asset with a bid of approximately Rs 16.92 billion. Under the NHIT model, the trust will operate and maintain the highways for a predetermined period, collect toll revenues, and repay investors. This approach, along with the toll-operate-transfer (TOT) model where private investors manage NHAI assets under long-term leases, is designed to ease the financing burden on NHAI. Funds raised through InvIT monetisation are primarily used to service and repay NHAI’s debt. To date, NHIT has raised a cumulative Rs 259 billion through three fundraise rounds and has acquired 15 road stretches spanning 1,525 km across nine states including Uttar Pradesh, West Bengal, Assam, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, and Telangana. The latest asset acquisitions will add road stretches from Karnataka, Andhra Pradesh, Uttar Pradesh, Uttarakhand, and Chhattisgarh. Looking ahead, NHAI is targeting a monetisation raise of approximately Rs 540 billion in FY24-25 through InvIT, TOT, and project-based financing. In the current financial year, apart from regular debt servicing, NHAI has repaid around Rs 560 billion through these initiatives. The agency’s budgetary support for the next financial year stands at Rs 1.7 trillion, with the capital expenditure for building highways set at Rs 2.72 trillion for FY26. This significant fundraise by NHIT not only underscores the growing investor confidence in India’s infrastructure sector but also marks a strategic move to further monetise and develop the nation’s highway assets.

Next Story
Infrastructure Urban

Andhra Pradesh to Develop 30,000 Women-Led Enterprises by 2025

The Municipal Administration and Urban Development (MAUD) Department is accelerating efforts to create sustainable livelihoods for women in urban areas, in line with Chief Minister Nara Chandrababu Naidu’s goal of fostering one lakh women entrepreneurs by 2025. Under this initiative, the MAUD Department has set a target to establish 30,000 women-led enterprises across towns and cities in Andhra Pradesh. To support this vision, the department plans to establish Micro, Small & Medium Enterprises (MSMEs) for women in TIDCO housing complexes. Vacant plots across 163 colonies have been earmarked ..

Next Story
Infrastructure Energy

G Kishan Reddy discusses mining expansion, clearances with Chhattisgarh CM

Coal and Mines Minister G Kishan Reddy met Chhattisgarh CM Vishnu Deo Sai on Friday to expedite land acquisition and environmental clearances for mining projects. Reddy, who was on a two-day visit to review operations at South Eastern Coalfields Ltd (SECL), discussed measures to boost mining-led economic growth in the state. Key topics included speeding up land acquisition for mine expansions, obtaining quicker environmental approvals, and setting up integrated rehabilitation and resettlement sites. The minister also highlighted the importance of developing critical minerals in the region, alo..

Next Story
Infrastructure Urban

NITI Aayog's Vision for India's Auto Industry

NITI Aayog has launched the report titled "Automotive Industry: Powering India’s Participation in Global Value Chains," offering a roadmap for the country’s automotive future. Released by Shri Suman Bery, Vice Chairman, the report outlines key strategies to grow India’s automotive sector to $145 bn in component production by 2030. India is currently the fourth-largest automobile producer globally, but with only a modest three per cent share in the global automotive component market. The report emphasises the need to strengthen India’s position through competitive manufacturing, skill d..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?