Muted Listing: Capital Infra Trust InvIT Makes A Flat Debut On Exchanges, Shares List At IPO Price; BUY?

Capital Infra Trust InvIT, sponsored by Gawar Construction, had a subdued debut on the stock exchanges as its units were listed at their issue price of Rs 99 per unit on both the NSE and BSE.

IPO Details & Performance

The Capital Infra Trust InvIT IPO, which closed on January 9, witnessed a subscription rate of 2.80 times. While the portion for institutional investors was subscribed 93%, the portion for other investors saw robust interest, being subscribed 5.08 times.

The IPO comprised a new issuance of units worth Rs 1,077 crore and an offer for sale (OFS) of units amounting to Rs 501 crore by Gawar Construction Ltd, bringing the total issue size to Rs 1,578 crore. The price band was set at Rs 99-100 per unit, and the trust raised Rs 703 crore from anchor investors ahead of the public offering.

The funds raised from the IPO will be used for critical financial objectives. These include providing loans to project SPVs (Special Purpose Vehicles) for the repayment of external debts and repaying unsecured loans taken by project SPVs from the sponsor, Gawar Construction.

SBI Capital Markets Ltd and HDFC Bank Ltd acted as the lead managers for the IPO, with Kfin Technologies Ltd serving as the registrar.

About Capital Infra Trust

Capital Infra Trust, established in September 2023, was created to function as an InvIT under SEBI regulations, focusing on investments in infrastructure projects. Sponsored by Gawar Construction, the trust benefits from the sponsor's extensive experience in road and highway project development across 19 states in India.

Gawar Construction collaborates with various government and semi-government entities, including the Central Public Works Department (CPWD), the Mumbai Metropolitan Regional Development Authority (MMRDA), the Ministry of Road Transport and Highways, and the National Highways Authority of India (NHAI).

Grey Market Premium

As of today, the grey market premium (GMP) for Capital Infra Trust InvIT IPO stood at Rs 0, indicating that the units were trading at their issue price of Rs 100 in the unlisted market. This neutral GMP reflects investor caution and suggests no immediate premium or discount expectations.