The Securities and Exchange Board of India (SEBI) has received the DRHP from Raajmarg Infra Investment Trust (RIIT), which is sponsored by the National Highways Authority of India (NHAI). Raajmarg Infra InvIT intends to raise INR 5,700 crore through an IPO. The NHAI is the sponsor, and Raajmarg Infra Investment Managers is the investment manager. SBI Capital Markets, Axis Capital, ICICI Securities, and Motilal Oswal Investment Advisors are lead managers of the issue.
Raajmarg Infra InvIT: Leveraging NHAI’s Monetisation Pipeline
The Raajmarg Infra InvIT is part of NHAI’s broader plan under the National Monetisation Pipeline (NMP-1), which targets INR 6 lakh crore in asset monetisation between FY22 and FY25. NHAI has already achieved about 72% of its target (INR 1.15 lakh crore) through toll-operate-transfer (TOT) and InvIT mechanisms. RIIT represents the next large-scale phase of this effort — a structured, institutional platform for recycling capital from completed highway projects.
The sponsor has committed to holding at least 15% of post-issue units, ensuring alignment with SEBI’s lock-in norms.
Raajmarg Infra InvIT Portfolio Snapshot: Five Toll Road Assets Across India
RIIT’s initial portfolio includes five operational toll road projects spanning 260.20 kilometers, located in Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka — forming part of India’s Golden Quadrilateral network.
| Asset | State | Highway | Length (km) | Model |
|---|---|---|---|---|
| Gorhar–Barwa Adda | Jharkhand | NH-19 | 80.522 | HAM |
| Chilakaluripet–Vijayawada | Andhra Pradesh | NH-16 | 69.408 | HAM/PBMC |
| Chennai Bypass | Tamil Nadu | NH-32 & NH-48 | 32.600 | EPC |
| Chennai–Tada | Tamil Nadu | NH-16 | 33.000 | EPC |
| Neelmangla–Tumkur | Karnataka | NH-48 | 44.668 | EPC |
Each asset enjoys exclusive tolling and maintenance rights for 15 years, with the potential for extension under the Concession Agreements.
Projected Revenue and Traffic Growth
Traffic reports indicate a robust compound annual growth rate (CAGR) in Passenger Car Units (PCU) and toll revenues across assets:
- Gorhar–Barwa Adda: Expected toll revenue to grow from INR 155.1 crore (FY27) to INR 385.6 crore (FY41).
- Chilakaluripet–Vijayawada: Forecast revenue increase from INR 225.7 crore (FY27) to INR 505.4 crore (FY41).
- Chennai Bypass and Chennai–Tada: Combined revenues projected to exceed INR 800.0 crore by FY41, driven by urban and port-linked freight.
- Neelmangla–Tumkur: Forecast steady growth as six-laning completes by FY27.
Traffic elasticity analyses in the DRHP tie vehicle growth to regional GDP and industrial output, particularly in Jharkhand’s coal belt, Andhra’s manufacturing zones, and Tamil Nadu’s logistics corridors.
Raajmarg Infra InvIT IPO: Financials
Sponsor (NHAI-related entity):
- Reported losses of INR 803.77 crore (FY24), largely due to capital transfers and restructuring of subsidiary SPVs.
- Personnel and administrative expenses have risen from INR 601.0 crore (FY22) to INR 804.3 crore (FY24).
- Massive working capital adjustments (negative operating cash flow of INR 13,441.6 crore in FY24) reflect the capital-heavy nature of NHAI’s portfolio.
Investment Manager (Raajmarg Infra Investment Managers):
- Incorporated 22 August 2025, with minimal operational expenses (INR 70,000 loss for Aug–Nov 2025 period).
- Cash position as of November 2025: INR 20.09 crore, funded primarily through equity infusion (INR 20 crore).
Market Positioning: Strategic Differentiators
1. Strong Institutional Backing
With NHAI as the sponsor and a robust regulatory framework, RIIT offers institutional investors exposure to de-risked, long-duration highway assets backed by government concession agreements.
2. Revenue Stability
Each Concession Agreement ensures:
- Annual toll indexation of 3% + 40% of WPI inflation.
- Protection against competing tollways and additional highways.
- Defined termination payments by NHAI in case of force majeure or defaults.
3. Growth Visibility
NHAI has earmarked 1,500 km of additional operational highways to be offered to the Trust over the next 3–5 years — providing a steady pipeline of future acquisitions.
4. Technological Edge
The DRHP outlines plans to introduce Multi-Lane Free Flow (MLFF) tolling systems using RFID and ANPR technologies, aligning with India’s digital tolling modernisation under the FASTag regime.
Final Words
Raajmarg Infra InvIT IPO filing represents India’s largest prospective InvIT listing since PowerGrid and IRB InvITs, potentially setting a benchmark for infrastructure asset monetisation in FY26–27. The Trust’s diversified asset base, regulatory-backed revenue model, and NHAI’s institutional strength position it as a flagship vehicle for long-term investors seeking stable yields in the 8–10% range, coupled with the potential for capital appreciation as India’s highway monetization accelerates.
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