Anantam Highways Trust InvIT Launches Rs 400 Crore IPO: A Closer Look at the Offering
Anantam Highways Trust InvIT, focusing on highway projects, has opened its IPO for subscription from October 7-9, 2023. The issue size is Rs 400 crore, comprising 4 crore units with a price band of Rs 98-100 per unit. The trust operates seven highway projects across India, spanning 271.65 km in five states and one union territory. In FY 2022-23, the trust reported a total income of Rs 942.36 crore and a profit after tax of Rs 410.62 crore, marking a significant turnaround from the previous year's loss. The IPO proceeds will primarily be used for debt repayment in project subsidiaries. The issue reserves up to 75% for QIBs and at least 25% for NIIs. Listing is scheduled for October 17, 2023, on BSE and NSE.
*this image is generated using AI for illustrative purposes only.
Anantam Highways Trust InvIT, an infrastructure investment trust focusing on highway projects, has opened its Initial Public Offering (IPO) for subscription. Here's a detailed breakdown of the offering and what potential investors need to know:
IPO Details
| Aspect | Details |
|---|---|
| Issue Size | Rs 400 crore |
| Subscription Period | October 7-9, 2023 |
| Listing Date | October 17, 2023 |
| Listing Venues | BSE and NSE |
| Issue Composition | 4 crore units |
| Price Band | Rs 98-100 per unit |
About Anantam Highways Trust InvIT
Anantam Highways Trust InvIT owns and operates seven highway projects across India:
- Total road length: 271.65 km
- Geographic spread: Five states and one union territory
- Revenue model: Toll collections and annuity payments
- Project Manager and Investment Manager: Dilip Buildcon
Financial Performance
| Metric | FY 2022-23 | FY 2021-22 |
|---|---|---|
| Total Income | Rs 942.36 crore | Not provided |
| Profit After Tax | Rs 410.62 crore | Loss of Rs 160.05 crore |
This significant turnaround in profitability showcases the trust's improved financial performance over the past year.
Use of IPO Proceeds
The company plans to utilize Rs 376 crore from the IPO proceeds to provide loans to its project subsidiaries for debt repayment. This move is likely aimed at strengthening the trust's financial position and reducing interest costs.
Investor Categories
The IPO has been structured to cater to different investor segments:
- Up to 75% of the issue reserved for Qualified Institutional Buyers (QIBs)
- At least 25% allocated for Non-Institutional Investors (NIIs)
Market Sentiment
As of now, the grey market premium for Anantam Highways Trust InvIT stands at zero percent. This neutral stance in the grey market could indicate cautious investor sentiment towards the IPO.
Potential investors should carefully consider the trust's operational history, financial performance, and the overall infrastructure sector outlook before making an investment decision. As always, it's advisable to read the offer document and consult with financial advisors to understand the risks and potential rewards associated with this investment opportunity.
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