Mumbai: National Highways Infra Trust (“NHIT”), a registered infrastructure investment trust under the InvIT Regulations, sponsored by NHAI (an autonomous authority of the Government of India) has filed a prospectus dated October 11, 2022 (“Prospectus”) for public issue of secured, rated, listed, redeemable, non-convertible debentures.
The face value of the issue is Rs. 1,000 each (comprising of 3 (three) separately transferable and redeemable principal parts (“STRPP”) namely 1 STRPP A of the face value of 300/-, 1 STRPP B of the face value of 300/- and 1 STRPP C of the face value of 400). The Issue opens on Monday, October 17, 2022 and closes on Monday, November 7, 2022 with an option of early closure.
The proposed issue has a base issue size of Rs. 750 crores with an option to retain oversubscription up to Rs. 750 crores, aggregating up to Rs. 1,500 crores (“Issue”). The NCD issue offers a coupon rate of 7.90% p.a. payable semi-annually and an Effective Yield of 8.05% per annum for NCD holders in all categories.
The NCDs are proposed to be listed on BSE and NSE (collectively, the “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Issue. The NCDs have been rated ‘CARE AAA/Stable’ by CARE Ratings Limited and ‘IND AAA/Stable’ by India Ratings and Research Private Limited.
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The minimum application size would be 10,000 (i.e. 10 NCDs) and thereafter in multiples of * 1,000 (i.e. 1 NCD) thereof. For each NCD allotted, the investors will be allotted 3 STRPPs of different ISINS which are individually tradeable post listing. The NCDs are being issued in form of STRPP A with a tenor of 13 years, STRPP B for a tenor of 18 years, and STRPP C for a tenor of 25 years. Interest payments through various modes are available.
The Net Proceeds are proposed to be utilized towards the infusion of debt into the Project SPV of NHIT, repayment of the bridge loan facility of NHIT (availed, if any), and general corporate purposes. The Infusion of funds will help the Project SPV of NHIT meet the obligations under the Concession Agreements and allow the Project SPV of NHIT to acquire the necessary rights under the Concession Agreement.
Lead Managers for the Issue are JM Financial Limited, A.K. Capital Services Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Trust Investment Advisors Private Limited. The credit rating agencies appointed are CARE Ratings Limited and India Ratings and Research Private Limited. The registrar to the Issue is KFin Technologies Limited.
The Basis of Allotment under the Issue will be on the basis of the date of upload of each application into the electronic book of the Stock Exchanges in accordance with the SEBI Operational Circular. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on a proportionate basis.
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