Capital Infra Trust Invit IPO Analysis
Updated on : 07 January, 2025

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Introduction
For investors interested in the rapidly growing Indian infrastructure market, the Capital Infra Trust initial public offering (IPO), which went live on January 7, 2025, is a crucial chance. It seeks to raise a sizeable sum of money as the year's first Infrastructure Investment Trust (InvIT) IPO in order to improve and grow infrastructure projects around the nation. This blog offers a thorough analysis of Capital Infra Trust, including its business plan, IPO details, and important factors for prospective investors to take into account.
Company Overview
Background and Establishment
Capital Infra Trust was established on September 25, 2023, under the Indian Trusts Act, 1882. Sponsored by Gawar Construction Ltd., a prominent player in infrastructure development, the trust was registered with the Securities and Exchange Board of India (SEBI) in March 2024. The primary goal of Capital Infra Trust is to create a diversified portfolio of road assets across India, focusing on enhancing infrastructure development to meet growing demands. For more information about the trust's formation, visit Capital Infra Trust Official Website.
Core Business Activities
The primary objective of Capital Infra Trust is to invest in road projects that are essential for economic growth. The trust operates under SEBI's guidelines for InvITs, allowing it to acquire, manage, and invest in a portfolio of infrastructure assets. Its focus is on highway projects that improve connectivity and facilitate trade across various regions. For further details, explore SEBI InvIT Regulations.
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Product and Service Offerings

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Capital Infra Trust specializes in:
- Highway Projects: The trust's portfolio includes 26 road projects operating under the Hybrid Annuity Model (HAM) with the National Highways Authority of India (NHAI). This model ensures regular cash flows through semi-annual payments. Learn more about HAM on the NHAI Official Website.
- Revenue-Generating Assets: Currently, the trust has nine completed projects generating revenue, contributing to its financial stability.
- Project Acquisition: Capital Infra Trust has the right to acquire new projects through a Right of First Offer (ROFO) from its sponsor, Gawar Construction Ltd. Learn more about ROFO on Investopedia.
Strategic Initiatives
Capital Infra Trust has positioned itself to be a leading player in India's infrastructure sector by leveraging technological advancements, forging strategic partnerships, and focusing on sustainability in project development. These initiatives aim to address the growing demand for reliable and efficient infrastructure solutions while creating long-term value for stakeholders. For further insight into infrastructure developments, visit The Ministry of Road Transport & Highways.
Key Achievements
- Successfully completing the acquisition of nine revenue-generating projects.
- Establishing a robust pipeline of potential assets through ROFO agreements with Gawar Construction Ltd..
- Earning AAA credit ratings from CRISIL, underscoring its financial strength and operational resilience. For more on CRISIL ratings, visit CRISIL Official Website.
Initial Public Offering (IPO) Details
Price Band and Lot Size
The IPO is priced between ₹99 and ₹100 per unit, with a minimum lot size of 150 units. This means that retail investors need to invest at least ₹15,000 to participate in the offering. Here's a breakdown of the investment requirements:
Component | Amount (₹) |
---|---|
Price Band | 99 - 100 |
Lot Size | 150 units |
Minimum Investment | 15,000 |
Issue Size and Structure
The total issue size is approximately ₹1,578 crore, comprising a fresh issue of ₹1,077 crore (10.77 crore units) and an offer for sale (OFS) of ₹501 crore (5.01 crore units). The structure of the issue is as follows:
Component | Amount (₹ Cr) |
---|---|
Fresh Issue | 1,077 |
Offer for Sale | 501 |
Total Issue Size | 1,578 |
IPO Important Timeline
The timeline for the Capital Infra Trust IPO is as follows:
- Opening Date: January 7, 2025
- Closing Date: January 9, 2025
- Basis of Allotment: January 10, 2025
- Initiation of Refunds: January 13, 2025
- Credit of Shares: January 13, 2025
- Listing Date: January 14, 2025
Subscription Categories
The IPO is divided into three main categories:
- Institutional Investors: Including banks, insurance companies, and mutual funds.
- Non-Institutional Investors: High-net-worth individuals and corporate entities.
- Retail Investors: Individual investors seeking stable and predictable returns.
Allotment Strategy
The allotment process will prioritize retail investors, ensuring a fair distribution of shares across all categories. Institutional investors will be allotted shares proportionate to their subscription size.
Financial Performance
Capital Infra Trust has shown promising financial results over recent fiscal years:
- FY22: Total income of ₹1,981 crore
- FY23: Total income of ₹2,518 crore
- FY24: Total income of ₹1,543.51 crore
- H1 FY25: Net profit of ₹115.43 crore on total income of ₹792.27 crore
For a deeper look at their financials, visit the Official Capital Infra Trust Financial Reports.
Detailed Financial Metrics
To provide deeper insights into Capital Infra Trust's financial health:
Particulars | As of March 31, 2023 | As of March 31, 2024 | As of September 30, 2024 |
---|---|---|---|
Revenue (₹ in millions) | 20,330.90 | 14,850.91 | 7,054.55 |
Equity (₹ in millions) | 9,835.26 | 11,190.07 | 12,344.33 |
Expenses (₹ in millions) | 18,538.40 | 13,686.40 | 6,359.65 |
Profit After Tax (₹ in millions) | 4,971.89 | 1,257.67 | 1,154.26 |
Total Assets (₹ in millions) | 42,833.30 | 47,240.66 | 49,052.63 |
Total Liabilities (₹ in millions) | 32,998.04 | 36,050.59 | 36,708.30 |
Debt to Equity Ratio (in times) | 2.67 | 2.74 | 2.53 |
This table illustrates fluctuations in revenue and profitability over time while highlighting the trust's growing equity base.
Financial Projections
Capital Infra Trust has outlined ambitious financial goals for the next five years, focusing on:
- Increasing annual revenue through the acquisition of high-yield assets.
- Reducing debt-to-equity ratio by leveraging proceeds from the IPO.
- Enhancing operational efficiency to boost net profit margins.
Investment Objectives
The net proceeds from the IPO will be utilized primarily for:
- Providing loans to Project Special Purpose Vehicles (SPVs) for repayment or pre-payment of external borrowings.
- Repayment of unsecured loans availed by Project SPVs from the sponsor.
- Funding new infrastructure projects to drive long-term growth.
Market Sentiment and Grey Market Premium
As of January 7, 2025, the grey market premium (GMP) for Capital Infra Trust shares remains at nil. This indicates cautious sentiment among investors prior to the IPO's closing, reflecting uncertainty about market conditions or investor confidence in the trust's long-term prospects.
Anchor Investors
Ahead of the IPO launch on January 6th, Capital Infra Trust raised approximately ₹710 crore from anchor investors through its anchor book. Notable participants include major insurance companies and mutual funds such as SBI Life Insurance and HDFC Mutual Fund.
Sector Outlook
The Indian infrastructure sector is poised for growth with significant investments under the National Infrastructure Pipeline (NIP), which encompasses over 9,000 projects across various sub-sectors. Foreign Direct Investment (FDI) inflows have also been substantial in recent years, further bolstering infrastructure development initiatives.
Key Drivers of Infrastructure Growth
Several factors are driving growth in India's infrastructure sector:
- Government Initiatives: The Indian government has launched numerous initiatives aimed at boosting infrastructure spending.
- Urbanization: Rapid urbanization is increasing demand for better transportation networks.
- Public-Private Partnerships (PPP): Collaborations between government entities and private firms are becoming increasingly common to fund large-scale infrastructure projects.
Risks and Considerations
Potential investors should consider several risks associated with investing in Capital Infra Trust:
- Market Volatility: The performance of infrastructure assets can be influenced by economic cycles.
- Regulatory Changes: Changes in government policies or regulations may impact operations.
- Competition: The landscape for infrastructure investment trusts is competitive and evolving.
Specific Risks Related to Capital Infra Trust
- Operating History: As a newly established trust without an extensive operating history, predicting future growth can be challenging.
- Dependence on NHAI Annuities: Revenue from Initial Portfolio Assets relies heavily on consistent annuity income from NHAI.
- Legal Proceedings: Ongoing legal matters involving Project SPVs or sponsors could adversely affect financial stability.
Competitive Advantages
Capital Infra Trust possesses several competitive advantages that may appeal to investors:
- Diversified Project Portfolio: With projects spread across multiple states like Haryana and Rajasthan, there is geographical diversification that mitigates risk.
- Hybrid Annuity Model Benefits: The HAM structure ensures regular cash flows through semi-annual payments.
- Strong Sponsor Background: Gawar Construction's extensive experience provides operational excellence.
- Robust Financial Profile: The AAA rating from CRISIL indicates strong financial health.
Future Growth Prospects

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Looking ahead, Capital Infra Trust has several avenues for growth:
- Expansion Opportunities: With a Right of First Offer from Gawar Construction Ltd., there are opportunities to acquire additional revenue-generating assets.
- Increased Infrastructure Spending: As government spending on infrastructure rises due to urbanization trends and policy initiatives like NIP, demand for reliable transport networks will likely grow.
- Sustainability Initiatives: Increasing focus on sustainable development could open new investment avenues within green infrastructure projects.
Conclusion
The Capital Infra Trust IPO presents an intriguing opportunity for investors looking to tap into India's growing infrastructure sector while benefiting from stable returns associated with highway projects under the Hybrid Annuity Model framework.
FAQs
What is the minimum investment required?
The minimum investment required for retail investors is ₹15,000 for one lot of 150 shares.
When will the shares be listed?
The shares are expected to be listed on January 14, 2025.
What are the key financials of Capital Infra Trust?
In H1 FY25, Capital Infra Trust reported a net profit of ₹115.43 crore on total income of ₹792.27 crore.
This comprehensive overview provides insights into the Capital Infra Trust IPO and its implications for potential investors in India's dynamic infrastructure landscape.