InvITs are financial instruments designed to unlock capital for income-generating infrastructure projects, providing an avenue for consistent returns. In India, they play a pivotal role in addressing funding challenges and enhancing private involvement in national development initiatives.
The country’s infrastructure ecosystem encompasses essential components like roads, bridges, and urban networks. Initiatives such as the National Infrastructure Pipeline (NIP) and Bharatmala Pariyojana are reshaping the landscape with significant capital allocations–₹111 lakh crore by FY25– and accelerated project execution. Among these, the roads segment remains a critical driver of connectivity and economic progress.
Capital Infra Trust InvIT presents an opportunity to engage with India’s infrastructure growth story. This blog delves into its IPO highlights, financial performance, and key risks to aid informed investment decisions.
Also read: India’s billion-dollar infrastructure industry: How to invest in it?
About Capital Infra Trust InvIT
Capital Infra Trust, launched in September 2023, was established to drive investments in infrastructure, guided by SEBI InvIT norms. It formally registered with SEBI in March 2024, marking its entry into India’s regulated InvIT space.
The portfolio comprises nine completed highway projects, spanning 682km across diverse geographies like Rajasthan, Karnataka, and Himachal Pradesh. Managed by SPVs–Special Purpose Vehicle – under concessions from National Highways Authority of India or NHAI, these assets have a residual concession period averaging 11.7 years as of September 2024.
Gawar Construction Limited, the sponsor, brings over 15 years of expertise in roads and highways. Known for efficient project delivery, it has built a strong portfolio of completed and ongoing developments. Furthermore, Capital Infra Trust has the strategic advantage of acquiring future assets through a Right of First Offer, ensuring growth potential.
You may also like: The main differences between REITs and InvITs
Financial health
| Particulars (₹ crore) | FY 24 | FY 23 | FY 22 |
| Revenue from operations | 1485.1 | 2033.1 | 1908.15 |
| Total income | 1543.51 | 2518.92 | 1981.42 |
| Total expenses | 1,368.64 | 1,853.84 | 1,813.34 |
| Profit before tax | 174.868 | 665.083 | 168.07 |
| Net profit for the period | 125.77 | 497.19 | 125.56 |
Capital Infra Trust InvIT IPO Details
Key facts and figures
The Capital Infra Trust InvIT IPO is scheduled to launch for public subscription on Tuesday, 7th January 2025. With a price band set, the trust aims to raise ₹1,578 crore at the upper limit. Meanwhile, the allocation process for anchor participants began, Monday, 6th January 2025.
| IPO price band | ₹99 to ₹100 |
| Lot size | 150 shares |
| Issue size | ₹1,578 crores |
| Fresh issue | ₹1,077 crores |
| Offer for sale | ₹501 crores |
| Listing at | BSE, NSE |
SBI Capital Markets & HDFC Bank are leading the coordination and execution of the issue. Meanwhile, KFin Technologies, appointed as the registrar, will oversee allotments, refunds, and investor-related services.
The allocation framework of the offer:
- 75% of the total allocation is reserved for qualified buyers.
- High-net-worth individuals fall under the non-institutional segment, which accounts for 25% of the overall distribution.
IPO calendar
Below is the schedule outlining key dates for Capital Infra Trust InvIT IPO:
| Event | Date (2025) |
| Start of IPO | 7 January |
| Closure of IPO | 9 January |
| Finalisation of Allotment | 10 January |
| Refund Process Begins | 13 January |
| Demat Account Share Credit | 13 January |
| Stock Exchange Listing | 14 January |
| Deadline for UPI Mandate Authorisation | 5:00 PM, 9 January |
Fund utilisation plan
The proceeds from the offer are planned for specific purposes:
- Loans will be provided to Project SPVs to facilitate the repayment or prepayment of external borrowings from financial institutions. This will include covering any accrued interest and applicable prepayment penalties.
- Additional loans will be extended to Project SPVs to clear unsecured liabilities taken from the Sponsor, ensuring improved financial structuring.
Potential pitfalls
Newly established: Being newly formed, the entity has no prior operations, making its performance difficult to predict. Factors such as revenue generation, compliance with regulations, fund-raising, and asset acquisition will play a decisive role in achieving projected returns.
Reliance on annuity income: Any delay or default in biannual payouts from NHAI could harm financial stability and limit returns.
Declining revenue trend: The significant drop from FY23 to FY24 figures, signals challenges in adapting to market shifts and ensuring consistent growth.
Legal challenges: Some Project SPVs, along with key stakeholders, are involved in disputes that could potentially harm the InvIT if resolved unfavourably.
Also read: Road infrastructure in India: A snapshot of its current status and future
Bottomline
Capital Infra Trust InvIT offers a gateway to infrastructure investments through its operational highway projects. However, challenges such as regulatory hurdles, revenue dependencies, and ongoing litigation require careful consideration.
The Trust’s long-term outcomes hinge on its ability to address these issues. Investors should thoroughly assess the offering in light of their financial goals and risk tolerance.
