Dilip Buildcon , a prominent player in the infrastructure sector, has announced ambitious expansion plans for its Infrastructure Investment Trust (InvIT). The company's InvIT, which currently manages seven Hybrid Annuity Model (HAM) road projects, is set to significantly increase its portfolio value over the next few years.

Current Portfolio and Expansion Target

Dilip Buildcon's InvIT presently holds a portfolio of seven HAM road projects, collectively valued at ₹4,500 crore. However, the company has set its sights on a substantial expansion, aiming to grow its portfolio value to between ₹20,000 crore and ₹30,000 crore over the next two to three years.

Implications of the Expansion

This planned expansion represents a significant scaling up of Dilip Buildcon's InvIT operations. If successful, it would mean a four to six-fold increase in the trust's enterprise value. Such growth could potentially:

1. Enhance the company's position in the infrastructure sector
2. Provide increased opportunities for investors in infrastructure assets
3. Contribute to the development of India's road infrastructure

The company's focus on HAM road projects through its InvIT structure suggests a strategic approach to infrastructure development and investment. HAM projects, which involve a combination of government support and private investment, have become an increasingly popular model in India's road sector.

As Dilip Buildcon moves forward with its expansion plans, market observers will likely keep a close watch on the company's progress in achieving this ambitious target. The success of this initiative could have significant implications not only for Dilip Buildcon but also for the broader infrastructure and InvIT landscape in India.

Dilip Buildcon Limited (DBL) has achieved a significant milestone with the listing of Anantam Highways InvIT on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This development follows the company's earlier transfer of stakes in seven highway subsidiaries to the InvIT.

Transaction Details

The Anantam Highways InvIT public issue saw notable success:

Marquee investors included WhiteOak Capital, SBI Capital Markets, Edelweiss Life Insurance, Reliance General Insurance, and Minerva Ventures Fund.

InvIT Structure and Portfolio

• Backed by Dilip Buildcon (74%) and Alpha Alternatives (26%)
• Holds seven hybrid annuity model road projects
• Enterprise value of ₹4,500.00 crore
• Average residual concession life of 13 years

Future Plans

Anantam InvIT has outlined expansion plans:

• Targeting ₹20,000.00-₹30,000.00 crore enterprise value
• Plans to add operational highway assets across India

Strategic Implications

This launch aligns with Dilip Buildcon's capital recycling strategy, aiming to:

• Enhance balance sheet strength
• Create long-term stakeholder value
• Implement structured monetization of operational assets

Conclusion

The listing of Anantam Highways InvIT represents a significant step for Dilip Buildcon in its asset management and growth strategy. This move demonstrates the company's ability to attract investor interest and positions it for potential expansion in the infrastructure sector. As the InvIT plans to grow its portfolio, it may create new opportunities for both Dilip Buildcon and investors in the infrastructure space.