The highways authority’s first public InvIT aims to broaden its investor base; mandate includes SBI Caps, Axis, ICICI Sec and Motilal Oswal
The National Highways Authority of India (NHAI) has appointed four investment banks to steer the initial public offering of a new infrastructure investment trust (InvIT), which could raise ~INR 8,000 crore, according to reports. NHAI InvIT IPO mandate has been awarded to SBI Capital Markets, Axis Capital, ICICI Securities and Motilal Oswal, with the issue expected to hit the market by mid-2026.
Significance of NHAI InvIT
If completed, NHAI InvIT would be India’s largest InvIT IPO to date, surpassing the INR 7,735‑crore PowerGrid InvIT issue from May 2021, the reports added. It will also be the first time NHAI taps retail investors with an equity listing of its highways InvIT, adding a new layer to the Centre’s asset monetisation playbook.
“The deal is likely to come to the market by the middle of next year or the second half,” the report added, indicating that documentation and regulatory approvals will set the pace for launch. The proposed size of NHAI InvIT will be around INR 8,000 crore, though the final construct could vary with market conditions and portfolio selection.
Track Record & Pipeline
NHAI already sponsors the privately placed National Highways Infra Trust (NHIT), anchored by CPP Investments and Ontario Teachers’ Pension Plan, and has used the InvIT route in four rounds to monetise operational road assets. In March 2025, NHAI closed a record transaction worth INR 18,380 crore with NHIT, taking cumulative InvIT monetisation since 2020 to over INR 46,000 crore, the highways ministry said earlier.
The push for NHAI InvIT follows the authority’s stated objective of widening the investor base and lowering debt through InvIT monetisation in FY25 and beyond, as articulated in its earlier communications and strategy updates. Earlier reports added that NHAI aimed to monetise INR 15,000–20,000 crore of projects in FY25 via the InvIT route to trim borrowings.
Regulatory Context & Investor Lens
Policy makers have signalled an intent to raise retail participation in InvITs, and the highways ministry has publicly argued for broader citizen ownership of road assets through market instruments. At the same time, experts have cautioned that any relaxation to include a larger share of under‑construction assets in public InvITs should balance yields with construction and completion risks for retail investors.
NHAI InvIT IPO: Competitive Landscape
A broader InvIT listing pipeline has been building, with multiple trusts exploring public markets over FY26 to deepen liquidity and diversify funding sources. Industry trackers have flagged potential offerings from highways‑focused InvITs alongside NHAI’s, pointing to a maturing asset class and rising domestic appetite for yield products.
NHAI InvIT IPO: Key Highlights
- Mandated banks: SBI Capital Markets, Axis Capital, ICICI Securities, Motilal Oswal.
- NHAI InvIT IPO size (Expected): about INR 8,000 crore; timing indicated for mid‑2026.
- Would top the INR 7,735‑crore PowerGrid InvIT IPO from May 2021.
- NHAI InvIT monetisation so far: over INR 46,000 crore across four rounds; latest INR 18,380 crore in March 2025.
- Strategic goal: broaden investor base, including retail, and pare debt via InvIT route.
Conclusion
The move to line up managers for NHAI InvIT IPO marks a decisive next step in mainstreaming road‑asset monetisation through markets. The eventual asset mix, regulatory guardrails and the rate backdrop will determine pricing and investor turnout, but the proposed size and timing suggest the highways authority is preparing for a marquee yield offering in FY26.
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