Capital Infra Trust InvIT IPO Review
Key Highlights
- IPO Opening Date: January 7, 2025
- IPO Closing Date: January 9, 2025
- Price Band: ₹99 to ₹100 per unit
- Issue Size: ₹1,578 crore
- Grey Market Premium (GMP): Currently at zero, indicating no premium over the issue price [Source]
About Capital Infra Trust
Capital Infra Trust, established in September 2023, is an Infrastructure Investment Trust (InvIT) sponsored by Gawar Construction. The trust focuses on managing revenue-generating infrastructure assets, primarily national highways, across various states in India. [Source]
IPO Details
- Fresh Issue: ₹1,077 crore
- Offer for Sale (OFS): ₹501 crore
- Face Value: Not specified
- Lot Size: 150 units
- Minimum Investment: ₹15,000 at the upper price band
- Listing At: BSE and NSE
- Anchor Investors: Raised ₹703 crore from anchor investors prior to the IPO [Source]
Important Dates
- Basis of Allotment Date: January 10, 2025
- Refunds Initiation: January 13, 2025
- Credit of Units to Demat: January 13, 2025
- IPO Listing Date: January 14, 2025
Objectives of the IPO
- Debt Repayment: To provide loans to project special purpose vehicles (SPVs) for repaying external borrowings and unsecured loans from the sponsor.
- General Corporate Purposes: To support overall business growth and development.
Risks and Considerations
- Market Sentiment: The current zero GMP suggests lukewarm interest from investors, which may impact listing performance.
- Sector-Specific Risks: Investments are concentrated in infrastructure projects, particularly national highways, which may be affected by regulatory changes and economic conditions.
- Revenue Dependence: The trust's income is reliant on the performance and revenue generation of its infrastructure assets.
Conclusion
Capital Infra Trust's InvIT IPO offers investors an opportunity to participate in India's infrastructure sector through a diversified portfolio of revenue-generating assets. Potential investors should carefully assess the current market sentiment, as indicated by the zero GMP, and consider the associated risks before making investment decisions.
