EPFO to Invest ₹1,000 Crore in NHAI’s RIIT InvIT

By Kotak News Desk
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09 Mar 2026 at 3:10 PM IST
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Market News
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Summary

EPFO will invest ₹1,000 crore in NHAI-backed Raajmarg Infra Investment Trust as a strategic investor. The InvIT IPO, opening 11 March, aims to raise ₹6,000 crore to acquire operational highway assets.

The Employees’ Provident Fund Organisation (EPFO) is set to invest about ₹1,000 crore as a strategic investor in Raajmarg Infra Investment Trust (RIIT), an infrastructure investment trust sponsored by the National Highways Authority of India (NHAI).

The EPFO investment is expected to account for 16.6% of the units being offered. The initial public issue (IPO) will open for other investors on 10th March.

EPFO has already participated in similar infrastructure trusts. In the previous financial year, it invested ₹2,035 crore in the fourth round of asset acquisitions promoted by National Highways Infrastructure Trust (NHIT).

Who Are the Key Investors In The RIIT Issue?

The infrastructure investment trust (InvIT) has attracted interest from institutional investors ahead of its public offering.


EPFO	₹1,000 crore	16.6%
NHAI (Sponsor)	Not disclosed	15%
SBI Life Insurance	₹260 crore	4.3%

EPFO’s commitment would make it one of the largest investors in the issue, with a higher allocation than the sponsor itself. Managers of the InvIT are expected to begin inviting bids from anchor investors on 10th March, separate from those from strategic investors.

What Assets Will RIIT Acquire?

The InvIT aims to acquire five operational highway stretches spanning about 260 kilometres across several states.


Gorhar–Barwa Adda	Jharkhand	80.52
Chilakaluripet–Vijayawada	Andhra Pradesh	69.4
Chennai Bypass	Tamil Nadu	32.6
Chennai–Tada	Tamil Nadu	33
Neelmangla–Tumkur	Karnataka	44.6

Funding for the acquisitions will include ₹6,000 crore through equity issuance and ₹3,500 crore through debt.

The InvIT units are expected to be offered in a price band of ₹99–₹100 per unit, with around 10% of the units potentially reserved for retail investors. The minimum bid size for anchor investors is 150 units, valued at ₹14,850 at the lower end of the price band.

How Does This Support NHAI’s Monetisation Plan?

The RIIT initiative is part of the government’s broader plan to monetise highway assets through infrastructure trusts and other mechanisms.


Highway InvIT Transactions	₹15,720
Toll Operate Transfer (ToT)	₹12,357

NHAI has indicated that around 1,500 kilometres of additional highway assets may be transferred to RIIT over the next 3-5 years.

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What Investors Should Watch Next?

Investors may keep an eye on the reaction of the anchor and institutional investors when the bidding first starts. It will be the final amount of subscriptions and price determinations that will move market sentiment for structures like InvITs.

Besides that, it will be important for market players to see how well the InvIT is able to use the funds for acquiring and operating highway assets.

Additionally, future asset transfers by NHAI and the pace of highway monetisation, as outlined in the infrastructure plan, will be very important factors for the long-term prospects of such investment vehicles.

Sources:

Financial Express

Outlook Money

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