The NHAI NCD worth INR 750 crore is starting from Oct 17, 2022, onwards. The National Highway Infra Trust (NHAI) is a recognized infrastructure investment trust as per the InvIT’s Regulations. It now has the power to impose tolls, run, and maintain a portfolio of five Initial Toll Roads in the Indian states of Gujarat, Rajasthan, Telangana, and Karnataka. In the Indian states of Telangana, Maharashtra, Uttar Pradesh, and Madhya Pradesh, it also intends to impose tolls, run, and manage a portfolio of three Target Toll Roads.
The NHAI issued concessions, and these Toll Roads are maintained and operated in compliance with them. The Initial Toll Roads are made up of five segments with a total length of around 389 km, whilst the Target Toll Roads are made up of three portions with a length of approximately 246 km.
The Project SPV and the NHAI have 8 different concession agreements covering the concessions of each of the Toll Roads. It is also in charge of managing the maintenance and management of the Toll Roads. The Project SPV is required to provide the NHAI with the concession fee in exchange, as indicated in the applicable Concession Agreements, prior to the start of the Concession.
NHAI NCD Allocation Ratio
| Category | NCD’s Allocated |
| Institutional | 25% |
| Non-Institutional | 25% |
| HNI | 25% |
| HNI | 25% |
NHAI NCD Details
| Subscription Dates | Oct 17, 2022 – Nov 7, 2022 |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Face Value | Rs 1000 each NCD |
| Issue Price | Rs 1000 per NCD |
| Issue Size (Base) | Rs 750.00 Crores |
| Overall Issue Size (including oversubscription) | Rs 1500.00 Crores |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Tenor | 13 years, 18 years and 25 years |
| Credit Rating | PROVISIONAL CARE AAA;Stable by CARE Ratings and PROVISIONAL IND AAA/Stable’ by India Ratings and Research Private Ltd |
| Basis of Allotment | First Come First Serve Basis |
| Listing On | BSE, NSE |
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NCD Rating
The NCDs proposed to be issued under this Issue have been rated PROVISIONAL CARE AAA; Stable’ by CARE Ratings Limited for an amount of up to Rs 15,000 million by way of their letter dated August 25, 2022. They were further revalidated on September 23, 2022, and rated as “PROVISIONAL IND AAA/Stable” for an amount of up to Rs 15,000 million by India Ratings and Research Private Limited.
NHAI (National Highway Infra Trust): National Footprint
NHAI NCD: Object Of The Issue
- Infusion of debt into the Project SPV: The proceeds of the debt infused into the Project SPV shall be utilized by the Project SPV for: (a) part payment of (i) initial estimated concession value to the Sponsor, in terms of the Concession Agreements; (ii) initial improvement cost; (iii) major maintenance cost; and/or (b) creation and maintenance of major maintenance reserve, if any; and/or any (c) any general corporate purposes.
- In the event that the Bridge Loan Facility has been drawn instead (whether partly or fully) (“Bridge Amount”) by the Trust, then the Trust proposes to utilise the Issue proceeds to such extent to repay the Bridge Amount.
- General corporate purposes.
NHAI (National Highway Infra Trust) Company strengths
- NHAI is a seasoned sponsor with a solid track record of managing and upkeep of projects in the Indian roads and highways sector.
- NHAI is Present in strategic regions.
- The management staff of NHAI is skilled and has experience in the industry.
NHAI (National Highway Infra Trust) Company weakness
- Certain investment ratios that NHAI must maintain could expose it to more risks.
- NHAI cannot guarantee that the Trust will be able to raise the debt, and any failure to do so could negatively affect its operational outcomes.
- The Trust is now engaged in the institutional placement and preferential issue of its Units.
Company Contact Information
National Highways Infra Trust
G – 5 & 6, Sector 10,
Dwarka,
New Delhi – 110 075
Phone: +91 11 2507 6536
Email: nhit@nhai.org
Website: https://www.nhaiinvit.in/index.html
National Highways Infra Trust NCD Oct 2022 Registrar
KFin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: nhit.ncdipo@kfintech.com
Website: https://karisma.kfintech.com/
National Highways Infra Trust NCD Oct 2022 Lead Manager(s)
- JM Financial Consultants Private Limited
- A.K. Capital Services Limited
- ICICI Securities Limited
- SBI Capital Markets Limited
- Trust Investment Advisors Private Limited
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