NHAI-Backed Raajmarg InvIT Targets ₹6,000 Crore IPO

NHAI is bringing its highway InvIT to the IPO market. Raajmarg Infra Investment Trust, sponsored by the National Highways Authority of India (NHAI), plans to raise up to ₹6,000 crore, roughly $656 million, through a public issue of units.

The offering comes at a time when IPO momentum has cooled after two strong years, and recent listings have delivered mixed returns.

What Are The Key Details Of The IPO?

The issue size has been increased from the earlier ₹5,700 crore indicated at the draft stage to ₹6,000 crore. It is structured as a book-built issue.

SBI Capital Markets, Axis Bank, ICICI Securities and Motilal Oswal Investment Advisors are advising on the issue, while Kfin Technologies is the registrar.

The net proceeds will be infused into the project’s special purpose vehicle. These funds will be used to pay the concession value of the InvIT assets to NHAI and meet improvement costs. A portion will also be used for general purposes.

What Assets Back The Trust?

Raajmarg Infra Investment Trust is registered with SEBI as an infrastructure investment trust. The trust has been set up to own and run completed highway stretches under long-term concession arrangements.

To begin with, it will hold five operational toll roads spread across Jharkhand, Andhra Pradesh, Tamil Nadu and Karnataka. Combined, these stretches cover a little over 260 kilometres and are part of the Golden Quadrilateral network.

The stretches include:

• Gorhar–Barwa Adda,

• Chilakaluripet–Vijayawada,

• Chennai Bypass,

• Chennai–Tada and

• Nelamangala–Tumkur.

These roads sit under Raajmarg 1 Projects Private Limited, the special purpose vehicle that operates the assets and collects toll revenue as per concession terms.

For the period ended November 30, 2025, restated financials show total assets of ₹20.09 crore and a marginal loss after tax of ₹0.01 crore.

Because the roads are already operational, the structure avoids construction risk. Returns, however, will depend on traffic flow and toll collections over time.

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How Does The Current IPO Market Environment Look?

The offer comes at a time when new listings have not generated the kind of enthusiasm seen in the past two years. So far this year, companies that have gone public have recorded a weighted-average decline of 0.7% from their listing price, pointing to a more cautious market mood.

Recent IPOs have seen uneven performance. Clean Max Enviro Energy Solutions Ltd., for instance, fell 18% on its first day of trading after raising $341 million.

That said, InvITs are typically evaluated differently from traditional equity IPOs. In InvIT offerings, the conversation usually turns to traffic numbers, the length of the concession and how predictable the payouts might be. Short-term listing gains tend to matter less than steady cash flows.

Raajmarg’s portfolio consists of operating roads, so there is no construction phase to worry about. That said, toll revenue still depends on vehicles actually using the stretches. Traffic trends and the broader economy will influence collections.

The timing of the launch also fits into NHAI’s larger plan of monetising completed assets and redeploying capital into fresh highway projects.

How the ₹99–₹100 price band is perceived will likely shape subscription levels. The anchor round, scheduled ahead of the public opening, could offer an early indication of demand.

In the current environment, where IPO demand has been uneven, the offering will show whether investors remain comfortable backing infrastructure vehicles that promise income stability rather than rapid price moves.

Sources:

Moneycontrol

ET

SEBI DRHP

Chittorgarh