Capital Infra Trust IPO: An Investment Opportunity in Infrastructure


Capital Infra Trust, previously known as National Infrastructure Trust, is preparing for its Initial Public Offering (IPO) as an Infrastructure Investment Trust (InvIT). This IPO allows investors to participate in India's rapidly expanding infrastructure sector, with a particular focus on national highway projects.

IPO Key Details

  • Subscription Dates: The IPO opens on January 7, 2025, and closes on January 9, 2025.
  • Size of the Issue: The IPO aims to raise ₹1,578 crore, including a fresh issue of ₹1,077 crore and an offer for sale worth ₹501 crore.
  • Price Band: Units are priced in the range of ₹99 to ₹100 per unit.
  • Minimum Investment Requirement: Investors must purchase a minimum lot of 150 units, equating to ₹15,000.
  • Listing Date: The IPO units are expected to be listed on the stock exchanges on January 14, 2025.

About Capital Infra Trust

Established in September 2023, Capital Infra Trust is focused on managing and investing in infrastructure projects, particularly national highways. The trust’s portfolio consists of nine operational road assets spread across multiple states, including Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh, and Karnataka, spanning approximately 682 kilometers.

Investment Advantages

  1. Consistent Cash Flow: The trust comprises fully operational assets, reducing construction-related risks and ensuring predictable income streams.
  2. Diversified Portfolio: The projects are located in different regions, minimizing dependence on any single area and enhancing revenue stability.
  3. Government Support: With assets operating under concessions from the National Highways Authority of India (NHAI), the trust benefits from policies supporting infrastructure growth.
  4. Future Expansion: There is significant potential for growth through the acquisition of additional projects from sponsors or third parties.

Financial Performance

  • Total Assets: As of September 30, 2024, the trust managed assets worth ₹4,905.26 crore.
  • Revenue: The revenue for the half-year ending September 30, 2024, was ₹792.27 crore.
  • Profit After Tax: The profit for the same period was ₹115.43 crore.

Risks to Consider

  1. Regulatory Risks: Changes in policies related to toll collection or infrastructure operations could impact revenue generation.
  2. Operational Risks: The trust's financial performance depends on efficient maintenance and operations.
  3. Economic Uncertainty: Economic downturns or reduced traffic flow on highways may affect toll revenues.

Is the IPO a Good Investment?

The Capital Infra Trust IPO presents a promising opportunity for investors looking to benefit from the growth of India's infrastructure sector. Its stable operational portfolio, combined with government support and prospects for further expansion, enhances its attractiveness. However, potential investors should evaluate the associated risks, such as regulatory and market uncertainties, and consider their long-term investment objectives.

By providing exposure to the infrastructure space, this IPO is ideal for those seeking steady, long-term returns. As with any investment, thorough research and alignment with financial goals are crucial before participating.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please review all relevant documents and consult with an investment advisor before making any decisions.

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