In a landmark achievement for India’s infrastructure monetization efforts, the National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT) established by the National Highways Authority of India (NHAI), has completed its fourth and largest fund-raising round, raking in an enterprise value of approximately ₹18,380 crore. This marks the biggest monetization transaction ever in the Indian roads sector.
Launched in 2020 to advance the Government of India’s National Monetization Pipeline, NHIT has now mobilized over ₹46,000 crore across four successful fund-raising rounds. The latest tranche saw a robust infusion of capital from a mix of prestigious domestic and international players—₹8,340 crore in unit capital and ₹10,040 crore in debt sourced from prominent domestic lenders.
These funds will facilitate the acquisition of critical highway stretches across several states: Anakapalle – Narsannapeta, Gundugolanu – Kovvuru, and Chittoor – Mallavaram in Andhra Pradesh; Bareilly – Sitapur and Muzaffarnagar – Haridwar in Uttar Pradesh/Uttarakhand; Gandhidham – Mundra in Gujarat; and Raipur – Bilaspur in Chhattisgarh. These projects, valued at ₹17,738 crore (including a ₹97 crore premium), are expected to enhance road connectivity and economic activity in their respective regions.
Investors enthusiastically subscribed to NHIT units through a book-building process, with the cut-off price set at ₹133.50—commanding a premium over the December 31, 2024 Net Asset Value (NAV) of ₹131.94. The offering drew keen interest from a diverse pool of financial giants, including domestic pension and provident funds like EPFO, L&T PF, and Indian Oil PF; insurers such as Axis Max Life; financial institutions like NaBFID, Axis Bank, and IndusInd Bank; as well as leading mutual funds including Nippon India and Baroda BNP Paribas.
Notably, the Employees’ Provident Fund Organisation (EPFO) made its maiden foray into InvITs with a ₹2,035 crore investment, signaling growing confidence in infrastructure-linked investment vehicles. Existing global investors such as the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board also reaffirmed their faith in NHIT by subscribing to the maximum extent permitted.
NHAI retained its strategic stake by subscribing to around 15% of the units at the same offering price, underscoring its long-term commitment to the trust.
With this latest round, NHIT now manages a diversified portfolio of 26 operating toll roads encompassing 41 toll plazas, covering 2,345 km across 12 Indian states. These assets come with concession periods ranging between 20 and 30 years, making NHIT a cornerstone of India’s road infrastructure ecosystem and a model for future public-private investment partnerships.
This milestone not only marks a financial triumph for NHAI but also sets a precedent in infrastructure monetization that could redefine how public assets are leveraged to fuel national development.
