Bharat Highways InvIT IPO: Review, Valuation, Date & GMP

Bharat Highways Invit's IPO  - Complete Overview

Bharat Highways Infrastructure Investment Trust (InvIT) has been established with the objective of acquiring, overseeing, and investing in a diversified portfolio of infrastructure assets within the Indian domain. Authorized by SEBI to function as an infrastructure investment trust, Bharat Highways InvIT holds a provisional rating of CRISIL AAA/Stable (Reaffirmed) from Crisil Ratings Limited, CARE AAA/Stable from CARE Ratings Limited, and IND AAA/Stable from India Ratings and Research.

The InvIT's comprehensive portfolio encompasses seven roads operating on a Hybrid Annuity Model (HAM) basis across Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These road assets operate under concession rights granted by the National Highways Authority of India (NHAI) and are presently owned and managed by Project Special Purpose Vehicles (SPVs), entirely owned by GRIL.

Additionally, Bharat Highways InvIT has entered into a Right of First Refusal (ROFO) agreement with GRIL, affording the trust the initial opportunity to acquire specified additional assets owned and developed by GRIL.

 

Bharat Highways Invit's IPO Overview

Bharat Highways Invit's IPO date is slated to be open for subscription from February, 2024 to March, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

Bharat Highways Invit's IPO price is fixed at Rs. 98 - Rs. 100 per share. 

The total issue size of this IPO amounts to Rs. 2,500.00CR. The company has reserved 75% for institutional investors, and 25% for other investors. 

 

 

Company Financial

As of March 31, FY23, compared to FY22, the company's assets rose to Rs.6,056.28 Cr, revenue dipped to Rs.1,537.47 Cr from Rs.1,600.18 Cr, and profit after tax increased significantly to Rs.527.05 Cr from Rs.62.87 Cr.

(Amount in Crore)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	5,916.80	6,056.28	5,536.40
Total Revenue	388.54	1,537.47	1,600.18
PAT	101.35	527.05	62.87

 

Revenue by Operations

In FY23, revenue from operations was Rs.1,509.48 Cr, and total revenue, including other sources, was Rs.1,537.47 Cr. This is a decrease from the FY22 revenue from operations, which was Rs.1,585.70 Cr.

(Amount in Crore)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	368.06	1,509.48	1,585.70
Interest on deposits with banks	17.39	22.58	10.47
Interest from vendor advance and income tax refund	1.99	3.47	4.00
Other Income	1.09	1.92	-
Total	3,88.54	1537.47	1600.18

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Issuing loans to the Project SPVs for the repayment or pre-payment, either in part or in full, of their respective outstanding loans, including any accrued interest and prepayment penalty.

• Providing loans for general purposes.

 

 

IPO's Strengths

• They have a substantial collection of assets that generate steady income without construction risks.

• Their roads portfolio and revenue sources are spread out geographically, minimising risk.

• They've demonstrated a consistent ability to effectively operate and maintain road projects in India.

• The industry they operate in is attractive, with strong fundamentals and government support.

• They have opportunities for portfolio growth and the rights to expand their assets.

• Their management team is skilled, experienced, and dedicated to good corporate practices.

 

IPO's Weaknesses

• Limited operating history may make it hard to predict how well InvIT will perform.

• Challenges with funding, tax rules, and acquiring assets can affect how much money InvIT makes and distributes.

• Past performance might not guarantee future success.

• NHAI's fixed annuities are crucial, but revenue predictions and potential impacts from fluctuations are uncertain.

• Regular maintenance is necessary for InvIT Assets, and not meeting standards can lead to penalties or contract termination.

 

IPO GMP Today

The Latest GMP of Bharat Highways Invit's IPO is Rs.2.

 

Bharat Highways Invit's IPO timetable (Tentative)

Bharat Highways Invit's IPO is scheduled from Feb 28 to Mar 1, 2024, with listing expected on March 6, 2024. 

Events	Date
IPO Opening Date	28 February 2024
IPO Closing Date	1 March 2024
IPO Allotment Date	4 March 2024
Refund initiation	5 March 2024
IPO Listing Date	6 March 2024

 

Bharat Highways Invit's IPO Details

Bharat Highways Invit's IPO, open from Feb 28 to Mar 1, offers shares at Rs. 98-100 each, with a lot size of 150 shares, totaling 250 crore shares and Rs. 2,500 Crore. It's a Book Built Issue listing on BSE and NSE, managed by Kfin Technology. 

IPO Opening & Closing Date	28 February 2024 to 01 March 2024
Face Value	Rs.  per share
Issue Price	Rs. 98 - Rs.100 per share
Lot Size	150 Shares
Price of 1 lot	Rs. 15,000
Total Issue Size	250,000,000 shares (aggregating up to Rs. 2,500.00 Cr)
Fresh issue	250,000,000 shares (aggregating up to Rs. 2,500.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technology Private Limited

 

 

Bharat Highways Invit's IPO Lot Details

Retail investors have a minimum investment option, while high-net-worth individuals (HNI) can choose from various lot sizes, ranging from a minimum to a maximum investment.

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	150	Rs.15,000
Maximum Lot Investment (Retail)	13 lot	1950	Rs.1,95,000
Minimum Lot Investment (HNI)	14 lot	2,100	Rs.2,10,000
Maximum Lot Investment (HNI)	66 lot	9,900	Rs.9,90,000

 

Bharat Highways Invit's IPO Reservation

QIB Shares Offered	Maximum 75%
Other Shares Offered	Minimum 25%

 

Bharat Highways Invit's IPO Lead Managers

• CICI Securities Limited

• Axis Bank Limited

• Hdfc Bank Limited

• Iifl Securities Ltd

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

Conclusion

Bharat Highways Infrastructure Investment Trust (InvIT) presents a comprehensive overview of its IPO, offering an opportunity for investors to participate in a diverse portfolio of infrastructure assets in India. With a strong provisional rating and a geographically spread-out road portfolio operating on a Hybrid Annuity Model (HAM), the InvIT has garnered attention.

The financial snapshot indicates positive growth in total assets, albeit with a slight decrease in revenue for FY23. The IPO's strengths lie in a well-managed asset collection, geographical diversification, and a skilled management team. However, challenges related to funding, tax regulations, and asset acquisition are noted as weaknesses.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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