NHAI Receives Sebi Approval for Raajmarg Infra Investment Trust as Public InvIT
NHAI has received Sebi approval for its Raajmarg Infra Investment Trust as a Public InvIT, aimed at unlocking monetisation potential of National Highway assets for retail and domestic investors. The trust's investment manager, RIIMPL, features equity participation from major banks including SBI, PNB, Axis Bank, HDFC Bank, and others. VMK Rajendra Kumar will serve as MD and CEO of the investment manager, with the initiative expected to accelerate National Highway network development while enabling retail investor participation in infrastructure growth.
*this image is generated using AI for illustrative purposes only.
The National Highways Authority of India (NHAI) has achieved a significant regulatory milestone with the Securities and Exchange Board of India (Sebi) approving its Raajmarg Infra Investment Trust (RIIT) as a Public Infrastructure Investment Trust (InvIT). The approval marks a crucial step in the government's infrastructure monetisation strategy, specifically targeting the highway sector.
Investment Objectives and Target Audience
The Public InvIT is designed to unlock the monetisation potential of National Highway assets while creating a high-quality, long-term investment instrument. The trust primarily targets retail and domestic investors, representing a strategic shift towards broadening public participation in India's National Highway infrastructure development. This initiative enables domestic retail investors to directly participate in national infrastructure growth, marking an important democratisation of infrastructure investment opportunities.
Investment Manager Structure
NHAI had previously incorporated Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL) to serve as the Investment Manager for RIIT. The investment manager has been established as a collaborative venture featuring equity participation from multiple leading financial institutions.
| Institution Type: | Participating Banks and Financial Institutions |
|---|---|
| Public Sector Banks: | State Bank of India, Punjab National Bank, IDBI Bank |
| Private Sector Banks: | Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Yes Bank |
| Financial Institutions: | NaBFID, Bajaj Finserv Ventures Ltd. |
Leadership and Management
VMK Rajendra Kumar, Member (Finance) at NHAI, has been appointed as the Managing Director and CEO (Additional Charge) of the investment manager company. This appointment ensures direct oversight and strategic alignment between NHAI's operational objectives and the InvIT's investment goals.
Strategic Impact on Infrastructure Development
The approval of RIIT is expected to play a pivotal role in accelerating the development of a robust National Highway network across the country. By enabling retail investor participation, the trust creates a sustainable funding mechanism for highway infrastructure while providing investors with exposure to stable, income-generating assets. The initiative represents a significant step in broadening public participation in India's National Highway infrastructure growth story, potentially setting a precedent for similar infrastructure monetisation efforts across other sectors.
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