Investment giants KKR and Ontario Teachers' Pension Plan (OTPP) have executed a significant divestment in Vertis Infrastructure Trust , selling over 25.17 crore units for a total of Rs 2,468 crore through open market transactions.

Transaction Details

KKR, through its entity Galaxy Investments II Pte Ltd, offloaded 20.48 crore units, while OTPP, via 2452991 Ontario Ltd, sold 4.7 crore units. The units were traded at a price range of Rs 98.01-98.02 per unit.

Buyers and Their Acquisitions

The stake sale attracted a diverse group of prominent buyers, including:

• Larsen & Toubro (L&T) and its group companies:
  • L&T Technology Services
  • LTI Mindtree
• Phillip Services India
• ICICI Prudential Mutual Fund
• WhiteOak Capital Mutual Fund
• Kotak Mahindra Life Insurance
• 360 ONE Prime
• Tata AIG General Insurance
• National Pension System Trust

Pre-Transaction Ownership

Prior to this transaction, KKR held a substantial 71.66% stake in the InvIT, while OTPP owned 24.99%.

About Vertis Infrastructure Trust

Vertis Infrastructure Trust is a significant player in India's infrastructure sector, with operations spanning across nine states. The trust manages 27 projects with assets under management valued at Rs 250 billion.

Market Response

Following the transaction, Vertis Infrastructure Trust units closed at Rs 98.20 per unit on the National Stock Exchange (NSE), reflecting market stability post the large-scale divestment.

This strategic move by KKR and OTPP has reshaped the ownership structure of Vertis Infrastructure Trust, bringing in a diverse set of institutional investors. The transaction underscores the attractiveness of infrastructure assets to a wide range of market participants, from construction conglomerates to mutual funds and insurance companies.

Highways Infrastructure Ltd's Initial Public Offering (IPO) witnessed an overwhelming response on its opening day, with the issue being oversubscribed 7.47 times within hours of its launch on Tuesday. The ₹130-crore IPO has garnered significant interest across various investor categories.

Subscription Details

The IPO saw strong demand across different investor segments:

• Retail Investors: 9.63 times oversubscribed
• Non-Institutional Investors: 7.14 times oversubscribed
• Qualified Institutional Buyers: 90% subscription achieved

IPO Structure and Pricing

The IPO is structured as follows:

Anchor Investment

Prior to the public offering, Highways Infrastructure Ltd successfully raised ₹23.40 crore from anchor investors, including notable names such as HDFC Bank and Abans Finance Pvt Ltd.

Company Profile

Highways Infrastructure Ltd, incorporated in 1995 and based in Indore, operates in several key areas:

• Tollway collection
• EPC (Engineering, Procurement, and Construction) projects
• Real estate development

The company specializes in the construction and maintenance of roads, highways, bridges, and residential projects.

Financial Performance

For the most recent reported period, the company disclosed:

Use of Proceeds

The company plans to utilize the funds raised from the fresh issue as follows:

• ₹65 crore for working capital requirements
• The balance for general corporate purposes

The strong investor response on the opening day of the IPO reflects the market's interest in Highways Infrastructure Ltd's business model and growth prospects in the infrastructure sector.