NHAI arm National Highways Infra Trust (NHIT) has successfully concluded the fourth round of fund-raising at an enterprise value of about Rs 18,380 crore, making it the largest monetisation transaction in the history of the Indian roads sector, according to an official statement issued on Wednesday.

NHIT is the Infrastructure Investment Trust (InvIT) set up by NHAI in 2020 to support the government's monetisation programme.

With the completion of this round, the total realised value across the four rounds stands at over Rs 46,000 crore.

In this round, the NHIT has successfully raised Rs 8,340 crore in unit capital from marquee domestic and international investors, along with Rs 10,040 crore in debt from domestic lenders, the Ministry of Road Transport and Highways said.

These funds will be used for the acquisition of National Highway stretches viz Anakapalle-Narsannapeta, Gundugolanu-Kovvuru, and the Chittoor-Mallavaram stretches in Andhra Pradesh, Bareilly-Sitapur and Muzaffarnagar-Haridwar stretches in UP/Uttarakhand, the Gandhidham-Mundra stretch in Gujarat, and the Raipur–Bilaspur stretch in Chhattisgarh, at a concession value of Rs 17,738 crore (including premium of Rs 97 crore). The investors subscribed to the units through a book-building process at a cut-off price of Rs 133.50 per unit, reflecting a premium over the December 31, 2024, NAV of Rs 131.94 per unit, the ministry’s statement said.

The issue attracted strong demand from both existing and new investors. Several domestic pension/provident funds, viz, the EPFO, L&T PF, Rajasthan Rajya Vidyut Karamchari PF, Indian Oil Corporation PF; insurance companies including Axis Max Life Insurance; banks/financial institutions including NaBFID, Axis Bank, IndusInd Bank; and mutual/ investment funds like Nippon India, Baroda BNP Paribas, Nuvama and White Oak Capital participated in the issue. In addition, NHIT’s existing foreign investors, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board, participated in the book building to their maximum limit, the statement said.

A significant development in this round is subscription by the Employees’ Provident Fund Organisation (EPFO) of Rs 2,035 crore. This is the first ever investment by EPFO in an InvIT. Also, the NHAI subscribed to its share of around 15 per cent of the units at the same price.

With completion of this round, the NHIT will hold a diversified portfolio of 26 operating toll roads (41 toll plazas) with an aggregate length of 2,345 km spread across 12 states with concession periods ranging between 20 to 30 years, the statement added.