Capital Infra Trust InvIT

Capital Infra Trust (erstwhile National Infrastructure Trust) is an infrastructure investment trust sponsored by Gawar Construction Limited, established on September 25, 2023 with the objective to carry on the activities of, and to make investments as, an infrastructure investment trust, as permissible under the SEBI InvIT Regulations. The Sponsor is an infrastructure development and construction company in India, with over 15 years of experience, primarily engaged in the construction of road and highway projects across 19 states in India for various government/ semi-government bodies and statutory authorities including NHAI, Ministry of Road Transport & Highways (MoRTH), Mumbai Metropolitan Regional Development Authority (MMRDA) and Central Public Works Department (CPWD). Since 2008, the Sponsor has undertaken more than 100 road construction projects. As on the date of this Offer Document, the Sponsor has a portfolio of 26 road projects on a hybrid annuity mode ('HAM') with NHAI, of which 11 are completed projects, including the five acquired assets which were erstwhile owned by Sadbhav Infrastructure Project Limited, and 15 under-construction projects. Trust primarily intends to acquire, manage and invest in the nine completed and revenue generating Initial Portfolio Assets, aggregating to approximately 682.425 kms, operated and maintained pursuant to concessions granted by the NHAI and are owned and operated by the Project SPVs. These roads are located in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka. The Initial Portfolio of Assets has a weighted average residual concession life of 11.7 years as of September 30, 2024.  In addition to the Initial Portfolio Assets, the Trust, through the Investment Manager, will also have the right to acquire new projects through a right of first offer with the Sponsor in accordance with the Right of First Offer Agreement. Capital Infra Trust is the first offer from the Investment manager. It offers dividend distribution, partial redemption and capital appreciation in the long run, so for HNI investors it may be good option for investment. So, we give NEUTRAL rating for this REIT. Readers must consult a qualified financial advisor prior to making any actual investment decisions.