NHAI Plans Public InvIT to Increase Investor Base

NHAI plans to launch a public Infrastructure Investment Trust (InvIT) to increase the overall investor base and cater to retail investors. The InvIT will offer three Toll-Operate-Transfer (ToT) bundles per quarter, ranging from Rs 2,000 crore to Rs 9,000 crore, and conduct one/two InvIT phases each year. The goal is to attract high-quality institutional investors and investors with expertise in infrastructure management.

The National Highways Authority of India (NHAI) has announced plans to launch a public Infrastructure Investment Trust (InvIT) to broaden the investor base and foster competition in the infrastructure market. This initiative follows the success of NHAI's private InvIT, which has already monetized over 2,300 kilometers of highways [2].

The public InvIT will offer three Toll-Operate-Transfer (ToT) bundles per quarter, including one smaller bundle (Rs 2,000 crore), one medium bundle (Rs 5,000 crore), and one large bundle (Rs 9,000 crore) [1]. This move aims to attract a diverse spectrum of investors, including high-quality institutional investors and retail investors with expertise in infrastructure management. The minimum subscription amount for public InvITs has been set in the range of Rs 10,000 to Rs 15,000, making it accessible to retail investors [1].

NHAI plans to conduct one or two InvIT phases each year, with the goal of providing stable cash flows and low-risk opportunities for investors. The InvITs will be highly regulated by the Securities and Exchange Board of India (Sebi), ensuring a structured investment avenue for both institutional and retail participants [2].

NHAI has identified 24 road assets, totaling 1,472 km, for monetization in 2025-26, expecting annual revenue of ₹1,863 crore [1]. The asset register, which will include all technical and financial details needed to determine the monetization potential of the asset, will be created to enhance private participation in NHAI’s asset monetization program [1].

This initiative is part of NHAI's broader strategy to attract private investors and foster competition in the infrastructure market. By offering multiple bundle sizes and improving risk-reward mechanisms for concessionaires, NHAI aims to make investment in road assets more attractive [1].

References:
[1] https://m.economictimes.com/news/economy/infrastructure/nhai-to-come-up-with-public-invit-to-attract-retail-investors/amp_articleshow/121723889.cms
[2] https://www.devdiscourse.com/article/headlines/3452323-nhai-launches-public-invit-to-expand-investment-opportunities