NHIT Concludes Record-Breaking ₹18,380 Cr Monetization Round; EPFO Joins as Investor

The latest round was executed at an enterprise value of approximately ₹18,380 crore, setting a new benchmark as the largest ever monetization transaction in the Indian roads sector.

In a landmark development for India's infrastructure monetization landscape, the National Highways Infra Trust (NHIT), an Infrastructure Investment Trust (InvIT) established by the National Highways Authority of India (NHAI) in 2020, has successfully concluded its fourth and largest fund-raising round to date. The latest round was executed at an enterprise value of approximately ₹18,380 crore, setting a new benchmark as the largest ever monetization transaction in the Indian roads sector.

Total Monetization Crosses ₹46,000 Crore

With the completion of this round, NHIT has now raised a cumulative value exceeding ₹46,000 crore across four rounds. This milestone underscores the Government of India's strategic focus on infrastructure monetization to boost public sector efficiency and attract long-term capital into critical transport assets.

Fresh Capital Infusion of ₹18,380 Crore

In this latest round, NHIT raised about ₹8,340 crore in unit capital from a mix of leading domestic and international investors. Alongside this equity infusion, the Trust also secured approximately ₹10,040 crore in debt from domestic lenders. This combined capital of ₹18,380 crore will be directed towards acquiring seven highway stretches across five states, collectively valued at ₹17,738 crore (inclusive of a ₹97 crore premium).

The road stretches being acquired in this round include:

• Andhra Pradesh: Anakapalle – Narsannapeta, Gundugolanu – Kovvuru, and Chittoor – Mallavaram

• Uttar Pradesh/Uttarakhand: Bareilly – Sitapur and Muzaffarnagar – Haridwar

• Gujarat: Gandhidham – Mundra

• Chhattisgarh: Raipur – Bilaspur

These projects are expected to significantly enhance NHIT’s toll-based revenue portfolio and operational footprint across India.

Strong Investor Interest; Cut-Off Price Reflects Premium

Investor confidence in NHIT remains robust, as demonstrated by strong demand for units through the book-building process. The units were subscribed at a cut-off price of ₹133.50 per unit, marking a premium over the Net Asset Value (NAV) of ₹131.94 per unit as of December 31, 2024.

Notably, the issue attracted a diverse mix of financial institutions, including major domestic pension and provident funds such as:

• Employees’ Provident Fund Organisation (EPFO)

• L&T Provident Fund

• Rajasthan Rajya Vidyut Karamchari PF

• Indian Oil Corporation PF

This round also saw enthusiastic participation from insurance companies like Axis Max Life Insurance, as well as banks and financial institutions such as NaBFID, Axis Bank, and IndusInd Bank. Mutual and investment funds including Nippon India, Baroda BNP Paribas, Nuvama, and White Oak Capital also joined the fray.

Additionally, NHIT’s prominent global investors, the Canada Pension Plan Investment Board (CPPIB) and the Ontario Teachers' Pension Plan Board, reaffirmed their commitment by participating in the issue up to their regulatory limits.

EPFO Makes Historic First InvIT Investment

A major highlight of this round was the participation of EPFO, which invested ₹2,035 crore—its first-ever investment in an Infrastructure Investment Trust. This move marks a pivotal moment in Indian institutional investment strategy, signaling growing trust in long-term infrastructure assets as viable investment vehicles for retirement and social security funds.

NHAI Retains 15% Stake

As the sponsor of NHIT, the National Highways Authority of India subscribed to approximately 15% of the newly issued units at the same cut-off price. This strategic holding by NHAI ensures alignment of interests between the sponsor and other investors while reinforcing confidence in the asset quality and governance of the Trust.

A Diversified Portfolio of 26 Toll Roads

Following the latest acquisitions, NHIT will command a well-diversified portfolio of 26 operational toll road assets comprising 41 toll plazas, with a total road length of 2,345 kilometers. These assets span 12 states across India and operate under concession agreements ranging between 20 to 30 years, ensuring long-term revenue visibility and stable cash flows.

Advancing India’s Infrastructure Monetization Vision

The successful conclusion of this round marks a significant step in the Government of India’s National Monetization Pipeline (NMP), which aims to unlock value in public sector assets and create robust investment opportunities. NHIT stands at the forefront of this initiative, serving as a model for structured, transparent, and investor-friendly monetization of infrastructure assets.

With strong backing from marquee investors, continued support from NHAI, and increasing interest from new institutional players like EPFO, NHIT is well positioned to further scale its portfolio while delivering value to both investors and the Indian public through improved highway infrastructure.