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.

Capital Infra Trust , a leading infrastructure investment trust, has reported its financial results for Q1, demonstrating steady performance and ambitious growth plans. The trust announced a distribution of Rs 3.61 per unit for the quarter, comprising Rs 2.61 per unit as interim distribution and Rs 1.00 per unit declared.

Financial Highlights

• Total income for Q1 stood at Rs 206.00 crores
• Net loss of Rs 73.00 crores, primarily due to a modification loss on financial assets
• Assets Under Management (AUM) maintained at Rs 4,185.00 crores
• Distribution guidance of Rs 14.61 per unit, translating to a 14.75% yield on issue price

Operational Performance

The trust currently manages approximately 683 kilometers of annuity roads with an average residual life of 11.3 years, providing visibility on cash flows. Six projects have fully completed and received their Commercial Operation Date (COD), while the remaining three projects have applied for completion certificates during the quarter.

Expansion Plans

In a significant move towards growth, Capital Infra Trust has received a Right of First Offer (ROFO) notice from its sponsors to acquire three operational Hybrid Annuity Model (HAM) assets:

1. JRR Highways Private Limited in Rajasthan
2. Hasanpur Bhaktiyarpur Highway Private Limited in Bihar
3. Korba Highway Private Limited in Chhattisgarh

These acquisitions are expected to add Rs 2,500.00-3,000.00 crores to the trust's AUM, representing a growth of around 60% from the current AUM.

Funding Strategy

To finance these acquisitions, Capital Infra Trust plans to raise Rs 900.00 crores through a combination of Private REITs Equity Placement (PREP) and Qualified Institutional Placement (QIP). The remaining portion will be funded through debt refinancing and sponsor units.

Future Outlook

Manish Satnaliwala, CEO of Capital Infra Trust, expressed optimism about the trust's growth trajectory, stating, "We are targeting over Rs 2,500.00 crores of AUM addition and remain focused on our long-term vision of reaching $5 billion in AUM by 2030."

The trust aims to maintain a prudent 80-20 mix between HAM and Build-Operate-Transfer (BOT) total exposure, focusing on high-quality operational HAM assets for scaling.

Regulatory Environment

The trust noted positive developments in the infrastructure sector, including the National Highways Authority of India's (NHAI) plans to build 124 highway and expressway projects, covering approximately 6,376 km. This aligns with Capital Infra Trust's core investment strategy, as 80 of these projects are under the HAM model.

Conclusion

Despite challenges such as the impact of the RBI's 75 basis points bank rate cut, Capital Infra Trust remains committed to delivering consistent and superior yields to its investors. The trust's strategy of combining expert asset management with innovative structuring, transparency, and disciplined risk management positions it well for long-term value creation in India's growing infrastructure sector.

As Capital Infra Trust moves forward with its expansion plans and maintains its focus on operational excellence, investors will be watching closely to see how these strategies translate into sustained returns and growth in the coming quarters.