About Bharat Highways Invit IPO
Bharat Highways Infrastructure Investment Trust has been established as an infrastructure investment entity. Its primary focus is on acquiring, managing, and investing in a diverse portfolio of infrastructure assets within India. Operating in accordance with SEBI InvIT Regulations, the company’s portfolio comprises seven roads, all operated under the Hybrid Annuity Model (HAM) across various Indian states. These roads, which have concession rights granted by NHAI, are owned by Project Special Purpose Vehicles (SPVs) wholly owned by GRIL. All assets held by the InvIT are HAM projects awarded by NHAI, and the trust’s revenue primarily stems from annuity payments from NHAI. The Trust has received provisional ratings from CRISIL, CARE Ratings Limited, and India Ratings and Research.
| IPO Dates | Min. Investment | Lot Size | Price Range | Issue Size | IPO Doc |
|---|---|---|---|---|---|
| 28 Feb-01 Mar 2024 | ₹14,700 | 150 | ₹98 – ₹100 | 2500 Cr | View |
Bharat Highways Invit IPO timiline
| Bharat Highways Invit IPO | Date |
|---|---|
| IPO Offer Start | 28 Feb2024 |
| IPO Offer Ends | 1 March 2024 |
| Allotment Finalisation | 4 March 2024 |
| Refund Initialisation | 5 March 2024 |
| Share Transfer to Demat | 5 March 2024 |
| Date of Listing | 6 March 2024 |
| Lot Size | 150 |
Financial Performance Overview
| Year | Revenue | Total Assets | Profit (PAT) |
|---|---|---|---|
| 2021 | 2,154 | 4,944 | 149 |
| 2022 | 1,586 | 5,356 | 62.87 |
| 2023 | 1,510 | 6,056 | 527 |
Strengths and Risks of Bharat Highways Invit IPO
Strengths:
- Stable revenue-generating assets without construction risk.
- Initial portfolio comprises seven operational InvIT Assets spanning approximately 497.292 km.
- Diversified presence across five states in India.
- Experience of the trust’s associate NMHPL in road engineering and construction, particularly in Rajasthan.
- Sponsor’s expertise in assessing road project conditions and serving as the Project Manager for the InvIT.
- Establishment as an infrastructure investment trust on August 3, 2022.
Risks:
- Lack of established operating history may hinder accurate assessment of future growth prospects.
- Dependency on consistent annuity income from NHAI for revenue generation.
- Potential adverse effects on financial condition if annuity income from NHAI is reduced or not received.
- Premature termination of InvIT Assets may lead to non-receipt of payments, impacting financial condition.
- Failure to maintain roads as per contractual requirements may result in penalties or contract termination, affecting reputation and financial stability.
- Legal and regulatory proceedings involving Project SPVs, Associates of the Investment Manager, and Trustee pose uncertainties.
- Dependency on financial performance and profitability of Project SPVs for maintaining consistency in distributions.
- Illiquid nature of Project SPVs’ concessions may pose challenges in realizing, selling, or disposing of non-performing assets.
