Bharat Highways InvIT Shares Closed 3% Higher
The initial public offering was subscribed 8 times on its final day.
Bharat Highways InvIT listed on the National Stock Exchange on Tuesday at Rs 101.10 apiece, a premium of 1.1% over its IPO price of Rs 100 per share.
On the BSE, the stock debuted at Rs 101, a 1% premium.
The stock closed 2.03% higher on the BSE but it was 3.03% above the IPO price. On the NSE, the stock closed 1.98% higher.
The initial public offering was subscribed 8 times on its third and final day. The bids were led by institutional investors (8.92 times) and other investors (6.93 times).
"If you see across the seven assets what we are going to acquire under this InvIT, we have almost (Rs) 3,517-crore-odd debt," Amit Kumar Singh, chief executive officer of the investment manager, told NDTV Profit. "What we are doing is out of the (Rs) 2,500 crore what we have raised here, (Rs) 2,400 crore are being used to repay those debt down across the seven SPVs (special purpose vehicles) and (the) balance (Rs) 100 crore is for general corporate purpose and issue-related expenses."
Singh said the company would also have its own plans to keep raising debt and equity at the InvIT level. It also plans to acquire one more asset through debt.
The current debt by enterprise value is at Rs 5,500 crore and the debt is around Rs 1,100 crore at the InvIT level with a 20% leverage. This gives them a leeway of a Rs 3,500-crore debt as per the RBI regulations to acquire more assets, according to Singh.
Business
The company is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India and to carry on the activities of an infrastructure investment trust, as permissible under the SEBI InvIT regulations.
