Capital Infra Trust Invit

The Capital Infra Trust InvIT is a book-built issue with a size of ₹1,578 crore. The offering comprises a fresh issue of 10.77 crore shares worth ₹1,077 crore and an offer for sale of 5.01 crore shares amounting to ₹501 crore. The issue is open for subscription on January 7, 2025, and close on January 9, 2025. The allotment is expected to be finalised on January 10, 2025, with the listing date set for January 14, 2025, on both BSE and NSE.

Priced between ₹99 and ₹100 per share, the minimum application size for retail investors is 150 shares, requiring a minimum investment of ₹15,000. For sNII and bNII categories, the minimum investments are ₹2,10,000 (2,100 shares) and ₹10,05,000 (10,050 shares), respectively. SBI Capital Markets Limited and HDFC Bank Limited are the lead managers, while KFin Technologies Limited is the registrar for this issue.

Key Details:

• Issue Type: Book-built Issue
• Issue Size: ₹1,578 crore
• Price Band: ₹99-100 per unit
• Issue Open Date: January 7, 2025
• Issue Close Date: January 9, 2025
• Expected Listing Date: January 14, 2025
• Lead Managers: Axis Capital, ICICI Securities, JM Financial, and Kotak Mahindra Capital
• Registrar: Kfin Technologies Limited

Timeline

IPO Open Date:	January 7, 2025
IPO Close Date:	January 9, 2025
Basis of Allotment:	January 10, 2025
Refunds:	January 13, 2025
Credit to Demat Account:	January 13, 2025
IPO Listing Date:	January 14, 2025

About Capital Infra Trust Invit IPO

Capital Infra Trust is an Infrastructure Investment Trust (InvIT) sponsored by Gawar Construction Limited.

• Focus: The InvIT primarily focuses on investing in completed and operational road and highway infrastructure projects in India.
• Investment Strategy: Capital Infra Trust aims to acquire a portfolio of high-quality road and highway assets that generate stable and predictable cash flows.
• Key Features:
  • Long-term Income: InvITs typically generate stable and predictable income streams through long-term leases or toll revenues from infrastructure assets.
  • Tax Benefits: InvITs offer certain tax benefits to investors.
  • Diversification: Investing in an InvIT provides investors with diversification benefits by investing in a portfolio of infrastructure assets.

Market Position:

• The Indian infrastructure sector, particularly the road and highway sector, is a key driver of economic growth.  
• InvITs have emerged as an attractive investment option for investors seeking stable and long-term income.  
• Capital Infra Trust aims to establish itself as a leading player in the Indian road and highway infrastructure InvIT space.  

Future Outlook:

• The Indian government is committed to investing heavily in infrastructure development, creating significant growth opportunities for the road and highway sector.  
• Capital Infra Trust aims to expand its portfolio through strategic acquisitions and deliver stable and attractive returns to its unit holders.  

Objective

The primary objectives of the Capital Infra Trust IPO are:

• Fund Acquisition of Assets: The primary objective is to utilize the net proceeds from the IPO to acquire additional road and highway infrastructure assets that meet the investment objectives of the InvIT. This will help expand the portfolio of the Trust and generate stable and predictable cash flows.
• Repayment of Debt: A portion of the proceeds may be used to repay or pre-pay existing borrowings of the InvIT or its project special purpose vehicles (SPVs). This will help reduce the debt burden and improve the financial stability of the Trust.
• General Corporate Purposes: The remaining proceeds will be used for general corporate purposes such as working capital requirements, transaction costs related to the IPO, and other general corporate expenses.

By achieving these objectives, Capital Infra Trust aims to strengthen its investment portfolio, enhance its financial performance, and provide attractive and stable returns to its unit holders.

Capital Infra Trust Invit : Weighing the Pros and Cons

POSITIVE

• Stable Income Streams: Infrastructure projects, particularly well-established road and highway projects, typically generate stable and predictable cash flows.
• Government Support: The Indian government is actively promoting infrastructure development, which can create favorable conditions for the sector.
• Experienced Sponsor: The sponsorship by Gawar Construction brings industry expertise and a strong track record.
• Diversification: Investing in an InvIT provides diversification benefits for investors, as it offers exposure to a different asset class.

Negatives

• Interest Rate Risk: Changes in interest rates can impact the cost of debt and affect the profitability of infrastructure projects.
• Construction and Operational Risks: Unexpected delays or cost overruns in construction or operational challenges can impact project profitability.
• Competition: Competition from other infrastructure InvITs and other investment options.
• Regulatory Risks: Changes in government regulations or policies related to infrastructure development can impact the sector.

So, How Does Capital Infra Trust Invit IPO Fare in Terms of Financials ?

Financial Review of Capital Infra Trust Invit IPO

Period Ended	Assets	Revenue	Profit After Tax
30 Sep 2024	4,905.26	792.27	115.43
31 Mar 2024	4,724.07	1,543.51	125.77
31 Mar 2023	4,283.33	1,251.89	497.19
31 Mar 2022	2,502.80	981.42	125.56

(₹ Crore)

Key Observations:

• Revenue Growth: The company has experienced significant revenue growth, particularly from Q1 2024 to Q2 2024, indicating strong performance from its portfolio of road and highway assets.
• Profitability: Profit after tax (PAT) has remained relatively stable, suggesting consistent cash flow generation from the underlying assets.
• Asset Growth: Assets have grown steadily over the past two years, reflecting the acquisition of new assets and organic growth.
• Disclaimer: This analysis is based on limited financial data and does not constitute financial advice.

Capital Infra Trust Invit IPO Valuation :

KPI	Values
ROE:	–
ROCE:	–
EBITDA Margin:	–
PAT Margin:	–
Debt to equity ratio:	–
Earning Per Share (EPS):	–
Price/Earning P/E Ratio:	–
Return on Net Worth (RoNW):	–
Net Asset Value (NAV):	–

SWOT Analysis of Capital Infra Trust Invit Limited

Strengths

• Experienced Sponsor: Backed by Gawar Construction, an experienced player in the Indian infrastructure sector.
• Focus on Stable Assets: Investment in completed and operational road and highway projects provides stable and predictable cash flows.
• Growth Potential: The Indian infrastructure sector, particularly roads and highways, offers significant growth potential.
• Diversification: Provides investors with an opportunity to diversify their portfolios by investing in infrastructure assets.

Weaknesses

• Interest Rate Risk: Changes in interest rates can impact the cost of debt and affect the profitability of infrastructure projects.
• Construction and Operational Risks: Unexpected delays or cost overruns in construction or operational challenges can impact project profitability.
• Competition: Competition from other infrastructure InvITs and other investment options.

Opportunities

• Portfolio Expansion: Acquiring additional high-quality road and highway assets to expand the portfolio and enhance returns.
• Exploring New Infrastructure Sectors: Potentially expanding into other infrastructure sectors such as renewable energy or data centers.
• Innovation: Exploring innovative financing structures and investment strategies to enhance returns.

Threats

• Economic Slowdown: An economic slowdown can impact traffic volumes and toll revenues.
• Regulatory Changes: Changes in government regulations or policies related to infrastructure development can impact the sector.
• Natural Disasters: Natural disasters such as floods or earthquakes can damage infrastructure assets and disrupt operations.

Competitive Analysis:Capital Infra Trust Invit IPO

Capital Infra Trust competes with other Infrastructure Investment Trusts (InvITs) and infrastructure funds in the Indian market. Some of the key competitors include:

• IndiGrid InvIT: A leading infrastructure InvIT focused on power transmission assets.  
• IRB InvIT: Another prominent player in the road and highway infrastructure InvIT space.  
• Hastc InvIT: An infrastructure InvIT focused on investing in highways and other infrastructure projects.

Capital Infra Trust Invit IPO GMP

• Grey market premium as on 07-01-2025 = ₹ /Share

Disclaimer:

• IPO Grey Market Premium (Capital Infra Trust Invit IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Capital Infra Trust Invit IPO

🔴 Live Subscription Status 🔴

07/01/2025 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Employees
Total

FINAL TAKEAWAY

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