The National Highways Authority of India (NHAI) has taken a decisive step in deepening its asset monetisation strategy by formally appointing advisers for its upcoming INR 10,000-crore infrastructure investment trust (InvIT) IPO. This will be the authority’s first public InvIT—a move that opens the door for retail investors to participate in India’s roads monetisation story.
NHAI InvIT: SBI Caps and JSA on Board
According to people familiar with the matter, NHAI has roped in SBI Capital Markets as the lead financial adviser and appointed law firm JSA as legal counsel for the IPO following a competitive bidding process. The move follows groundwork that began earlier this year, when NHAI invited bids from top law firms to advise on the structure and regulatory framework of the deal.
Additional advisers, including more bankers and legal teams, are expected to be added closer to the filing of NHAI IPO documents. Their role will span trust formation, asset transfer, and ensuring compliance with SEBI’s InvIT regulations.
Why This IPO Matters
NHAI already operates a private InvIT—National Highways Infra Trust (NHIT)—anchored by global investors CPP Investments and Ontario Teachers’ Pension Plan. That platform has been successful, with NHAI monetising over INR 46,000 crore across four InvIT rounds. In March alone, it sold projects worth INR 18,380 crore to NHIT, marking the largest single transaction in India’s roads sector.
However, the upcoming public InvIT marks a strategic pivot. Unlike private InvITs, where minimum investment starts at INR 25 crore (with lot sizes of 25,000 units), public InvITs allow subscriptions as low as INR 10,000–15,000, with just one unit per lot since 2021. This makes it accessible to retail investors, high-net-worth individuals, family offices, and corporate treasuries—a vast new pool of capital.
By opening its monetisation strategy to the public market, NHAI hopes to mitigate the risks of a limited institutional investor base, create a competitive environment for InvITs, and widen participation in infrastructure ownership.
The Roadmap Ahead
NHAI’s asset monetisation strategy report outlines a tentative list of 24 road assets (1,472 km in length) for monetisation in FY26, with annual revenue potential pegged at INR 1,863 crore. Assets will be selected based on age, revenue performance, and growth potential, and classified as highly attractive, moderately attractive, or lower-revenue assets in an upcoming asset register.
The authority will also continue offering toll-operate-transfer (ToT) bundles—three per quarter, ranging from INR 2,000 to 9,000 crore—alongside InvITs and securitisation (SPV-based financing). So far, NHAI has raised around INR 1.4 lakh crore till FY25 through these three monetisation routes.
Market Context: InvITs Gaining Steam
NHAI IPO comes at a time when India’s InvIT market is seeing renewed momentum. In recent months:
- Capital Infra Trust raised INR 1,578 crore (January 2024).
- Bharat Highways InvIT raised INR 2,500 crore (February 2024).
- KKR-sponsored Vertis Infrastructure Trust and Cube Highways InvIT (I Squared Capital-backed) are planning IPOs worth around INR 5,000 crore each.
The appetite is strong, particularly among domestic investors seeking stable, yield-generating products—making NHAI’s move well-timed.
Final Words
This IPO is more than a fund-raising exercise—it’s a structural shift in India’s infrastructure financing model. By mainstreaming InvITs and creating retail access, NHAI is setting a precedent that could deepen India’s capital markets and democratize infrastructure ownership.
If successful, NHAI InvIT 10,000-crore issue could not only unlock value for the authority but also pave the way for other state-backed entities to follow suit. It also signals confidence in India’s roads sector as an investable asset class, backed by predictable toll revenues and a growing investor base.
The real test will lie in execution—particularly in asset selection, yield stability, and market reception. But with SBI Caps and JSA steering the process, NHAI appears to be laying solid groundwork for what could be a landmark InvIT IPO in India’s infrastructure history.
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