Capital Infra Trust InvIT IPO: Everything Investors Need to Know
Capital Infra Trust InvIT, an infrastructure investment trust sponsored by Gawar Construction Limited, is set to launch its Initial Public Offering (IPO) from January 7 to January 9, 2025. With a strong focus on India’s road and highway infrastructure, this InvIT offers investors a unique opportunity to participate in the nation’s infrastructure growth story.
Here are the 10 key things you should know before investing in the Capital Infra Trust InvIT IPO:
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What makes Capital Infra Trust InvIT a good opportunity?
Capital Infra Trust InvIT manages a geographically diversified portfolio of road and highway assets across 19 Indian states, developed for various government agencies such as NHAI and MoRTH.
The InvIT focuses on Hybrid Annuity Model (HAM) projects, ensuring predictable cash flow. With 26 road projects under its belt (11 completed and 15 under construction), backed by a ‘Provisional CRISIL AAA/Stable’ rating, the trust has established itself as a reliable player in the infrastructure sector.
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What are the IPO dates, price band, and issue size?
Here are the key details of the IPO:
- IPO Dates: January 7 – January 9, 2025
- Listing Date: January 14, 2025
- Price Band: ₹99 – ₹100 per share
- Total Issue Size: ₹1,578 Cr
- Face Value: Not Applicable
- Listing Exchange: BSE, NSE
- Lot Size: 150 Shares
- Promoters: Rakesh Kumar and Ravinder Kumar
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What is the minimum investment for the IPO?
The minimum investment required to apply for the Capital Infra Trust InvIT IPO is ₹14,850, based on the lot size of 150 shares at the lower price band of ₹99 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹15,000 (150 shares at ₹100 per share).
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What does the company do?
Founded in September 2023, Capital Infra Trust InvIT focuses on infrastructure investments, primarily in the road sector:
- Services: Engages in the construction, operation, and maintenance of road projects.
- Portfolio: 26 road projects, including 11 completed assets and 15 under construction.
- Sponsorship: Supported by Gawar Construction Limited, a key player in road infrastructure.
The InvIT is designed to generate stable returns through annuity income and interest earnings from NHAI projects.
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What is the objective of the IPO?
The Capital Infra Trust InvIT IPO aims to:
- Provide loans to project SPVs for repayment/pre-payment of external borrowings, including accrued interest and prepayment penalties.
- Repay unsecured loans availed by project SPVs from the sponsor.
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How much is reserved for retail and other investors?
The IPO allocation is as follows:
• Qualified Institutional Buyers (QIBs): Up to 75%
• Non-Institutional Investors (NIIs): At least 25%
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What are the key strengths and risks?
Strengths:
- Diversified road asset portfolio across multiple states.
- Strong government backing with NHAI contracts.
- Experienced management and corporate governance.
- Favorable policies supporting infrastructure development.
Risks:
- Limited operating history as a newly settled trust.
- Dependence on annuity income from NHAI, with potential delays in payments.
- Cost escalation risks, especially for operations and maintenance.
- Vulnerability to early termination of Concession Agreements.
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What is the financial performance of Capital Infra Trust InvIT?
The financials showcase steady growth and asset accumulation:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 |
| Assets (₹ Cr) | 4,905.26 | 4,724.07 | 4,283.33 |
| Revenue (₹ Cr) | 792.27 | 1,543.51 | 2,518.92 |
| Profit After Tax (₹ Cr) | 115.43 | 125.77 | 497.19 |
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What is the allotment and listing timeline?
- Basis of Allotment: January 10, 2025
- Refund Initiation: January 13, 2025
- Shares Credited to Demat Accounts: January 13, 2025
- Listing Date: January 14, 2025
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Should you invest in Capital Infra Trust InvIT IPO?
Capital Infra Trust InvIT presents an interesting opportunity for investors seeking stable returns from infrastructure assets. Its strong backing, diversified portfolio, and favorable industry policies are key positives.
However, potential risks, such as limited operating history and dependency on annuity payments, should be carefully evaluated.
Consider your financial goals and risk tolerance before investing in this IPO.
