Capital Infra Trust Invit IPO: GMP, Subscription, Review

Capital Infra Trust Invit IPO: Everything You Need to Know

Capital Infra Trust, formerly National Infrastructure Trust, is a trailblazing infrastructure investment trust (InvIT) sponsored by Gawar Construction Limited. Specializing in road projects across India, the trust has gained attention for its strong portfolio and investor-friendly approach. This article provides an in-depth look at trust, covering all aspects to help you make an informed decision.

Table of Contents

About Capital Infra Trust

Capital Infra Trust was established on September 25, 2023, with a focus on investing in revenue-generating infrastructure projects. With over 15 years of experience, the trust’s initial portfolio comprises 11 completed road projects spanning 682.425 kilometres across Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh, and Karnataka. These projects operate under concessions granted by the National Highways Authority of India (NHAI), ensuring stable income streams.

About Sponsor ( GCL)

Gawar Construction Limited (GCL) is the Trust’s sponsor. GCL has a legacy of more than 25 years, originally established as a partnership firm ‘Gawar Construction Company’ in 1997 and was subsequently converted into a public limited company namely ‘Gawar Construction Limited’ on March 31, 2008, having its corporate office on Gurgaon. The Promoters of GCL have extensive experience in the road construction industry, contributing to the company’s success.

GCL is an integrated road EPC company with Geographical and Sectoral diversification having a footprint in 19 States across India.

Over the years GCL has undertaken and executed more than 100 road construction projects awarded by NHAI, Ministry of Road Transport and Highways, Military Engineering Services, BRO, and National Highway Infrastructure Development Corporation Limited under the EPC and HAM mode.

Capital Infra Trust Invit IPO: Financial Highlights

As of March 2024, Capital Infra Trust demonstrates solid financial health:

Assets Under Management (AUM): ₹4,724.07 crore.
Revenue: ₹1,543.51 crore.
Profit After Tax (PAT): ₹125.77 crore.
Residual Concession Life: Weighted average of 11.7 years.

Capital Infra Trust Invit IPO: Details

Issue Size: ₹1,578 crore (Fresh Issue: ₹1,077 crore, Offer for Sale: ₹501 crore).
IPO Shares on offer: 8,83,83,750.
Price Band: ₹99 to ₹100 per unit.
Lot Size: 150 units.
Minimum investment: ₹15,000.

Key Schedule

IPO Opens: January 7, 2025
IPO Closes: January 9, 2025
IPO Allotment: January 10, 2025.
Refund/ Shares transfer to Demat: January 13, 2025.
Listing Date: January 14, 2025

Subscription details:

6% Day 1.

Promotors/Sponsor

Gawar Construction Ltd. (Allocation 45%)
Company website: Capitalinfratrust.com
For more details: DHRP

Lead Managers:

HDFC Bank Ltd.
SBI Capital Market Ltd.

Registrars:

K FIN Technologies Ltd. (Karvy Fintech Pvt. Ltd.)

Capital Infra Trust Invit IPO: Objectives

Debt Reduction: Utilize funds to reduce outstanding debts.
Portfolio Expansion: Invest in additional revenue-generating road projects.
Operational Efficiency: Enhance operational capabilities of existing assets.

How to Apply

Via ASBA: Use the Application Supported by Blocked Amount (ASBA) process through your bank account.
Through Brokers: Apply via platforms like Dhan, Zerodha, Groww, or Angel One.
Using UPI: Link your UPI ID for seamless transactions.

Steps:

Log in to your trading account.
Select the IPO and enter bid details.
Confirm and authorize the transaction.

Capital Infra Trust Invit IPO: Review

Capital Infra Trust’s focus on annuity-based road projects ensures predictable cash flows, making it an attractive option for investors seeking steady returns. However, potential investors should consider risks such as dependency on NHAI and market fluctuations.

Risks and Considerations

Limited Operating History: As a relatively new trust, historical performance is limited.
Regulatory Dependency: High reliance on NHAI for annuity payments.
Market Risks: Fluctuations in economic conditions could impact returns.

Conclusion

Capital Infra Trust offers a unique opportunity to invest in India’s thriving infrastructure sector. Its robust portfolio and predictable cash flows make it a promising investment. However, potential investors should weigh the associated risks before committing.

Understanding the trust’s objectives, financial health, and investment strategy can help you decide whether this IPO aligns with your financial goals.

FAQs

Q1: What is Capital infra trust InvIT?

Ans: Infrastructure Investment Trusts (InvITs) are investment vehicles that pool money from investors to own and operate income-generating infrastructure assets.

Q2: Is the Capital Infra Trust IPO good for long-term investment?

Ans: Its annuity-based revenue model is a stable option for long-term investors seeking consistent income.

Q3: What is the minimum investment amount?

Ans: The minimum investment is ₹15,000 for 150 units.

Q4: Capital infra trust ipo review?

Ans: Capital Infra Trust’s focus on annuity-based road projects ensures predictable cash flows, making it an attractive option for investors seeking steady returns.

Q5: Capital Infra trust Invit IPO GMP Price?

Ans: To be updated soon.

Q6: Capital Infra trust retail quota?

Ans: Generally Provided quota of 15% to the retailer.

Capital Infra Trust Invit IPO: GMP, Subscription, Details, Review, Pros & Cons