Capital Infra Trust , an infrastructure investment trust (InvIT), has successfully completed a significant capital raise through a preferential allotment of units to Gawar Construction Limited. The move marks a substantial influx of funds for the InvIT, potentially bolstering its investment capabilities in the infrastructure sector.

Key Details of the Allotment

Significance of the Transaction

The preferential allotment was approved by the InvIT Committee of Gawar Investment Manager Private Limited, which serves as the Investment Manager to Capital InfraTrust. This decision underscores the trust's strategic approach to capital raising and its relationship with key stakeholders.

Sponsor Entity Status

It's noteworthy that Gawar Construction Limited is categorized as a sponsor entity of Capital InfraTrust. This classification may have implications for the company's involvement and responsibilities within the InvIT structure.

Regulatory Compliance

The newly allotted units will be subject to applicable lock-in requirements as stipulated by InvIT regulations. This measure ensures compliance with regulatory norms and may impact the liquidity of these units for a specified period.

Equity and Rights

Capital InfraTrust has confirmed that the newly allotted units will rank equally with the existing units of the trust. This parity ensures that all unitholders, including Gawar Construction, have equivalent rights and benefits associated with their investments in the InvIT.

This capital infusion of Rs 345.00 crore through the preferential allotment could potentially enhance Capital InfraTrust's capacity to invest in infrastructure projects, aligning with the broader objective of InvITs to facilitate investments in the infrastructure sector.

Capital Infra Trust , a prominent infrastructure investment trust, has made significant strides in its expansion and fundraising plans, with recent developments following the unitholder approvals received on October 31, 2025.

Revised Preferential Issue

The Board of Directors of Capital Infra Trust has approved a revised preferential issue worth Rs 345.01 crore, a substantial change from the previously approved amount of up to Rs 4,000.00 crore. The revised issue involves:

• Issuing 4.33 crore units
• Price per unit set at Rs 79.75
• Exclusive issuance to sponsor Gawar Construction Limited

Post-allotment, the sponsor's unitholding is expected to reach 49.98%.

Use of Proceeds

The funds raised through this preferential issue will be utilized exclusively for partial prepayment of the Trust's existing Non-Convertible Debentures, indicating a focus on debt management.

Previous Approvals

The decision for this revised preferential issue follows the unitholder authorization granted on October 31, 2025. Other key approvals received at that time included:

1. Acquisition of Highway Assets: Approval to acquire 100% equity share capital of three highway companies:

   • Hasanpur Bakhtiyarpur Highway Private Limited
   • JRR Highways Private Limited
   • Korba Highway Private Limited

2. Fundraising Flexibility: Authorization to issue and allot units through institutional placement, rights issue, or raise debt through various sources.

Voting Process Details

Implications

While the preferential issue has been revised significantly downward, Capital Infra Trust maintains its expansion strategy in the infrastructure sector. The acquisition of three highway companies, as previously approved, aligns with the Trust's growth plans in the highway assets portfolio.

The revised preferential issue demonstrates a targeted approach to capital raising and debt management. This move, coupled with the flexibility for additional fundraising through various methods, provides Capital Infra Trust with multiple avenues to support its expansion plans and capitalize on future opportunities in the infrastructure space.

Investors and stakeholders will likely be keen to observe how these developments impact the Trust's financial structure and growth trajectory in the coming months.