Nitin Gadkari, the Union Minister for Highways, stated on Friday that the retail part will increase in future fund-raising efforts after being encouraged by the very positive reaction from retail investors to the NHAI’s latest InvIT, whereby NCDs worth Rs 1,430 crore were issued.
After listing the second tranche of the NHAI Infrastructure Investment Trust (InvIT) and NCD, which earlier this month raised Rs 1,430 crore and the offer was oversubscribed nearly seven times, the minister was speaking to a crowd at the BSE.
Retail investors were only allowed to purchase up to 25% of the offering, although NHAI did not disclose how frequently the retail portion was oversubscribed, only that it received an overwhelmingly positive reaction. Infrastructure investment trusts are financial instruments that follow the model of mutual funds. They are created to pool investor capital and invest in assets that will generate cash flows over time.
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‘We want the more and more general public to invest in these InvITs, I mean in our roads, and I can assure you that NHAI’s roads offer 100 percent security to investors and also the best internal rate of return. So, going forward, we will have more portion being reserved for retail,’ Gadkari said without quantifying any numbers.
Speaking to the crowd, NHAI chairperson Alka Upadhyaya added that more units will be set aside for retail in the NHAI’s upcoming InvITs, although she did not provide a specific number. According to Gadkari, the InvIT has raised more than Rs 8,000 crore from domestic and international institutional investors so far, but the second tranche was unique because 25% of the NCD offering was set aside for individual investors.
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