Capital Infra Trust

About the Company

Our 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, our Sponsor has undertaken more than 100 road construction projects. As on the date of this Offer Document, our 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.

Industry Overview

Overview of the Indian Economy: Approximately Rs.173.82 lakh crore in Fiscal Year 2024, India's GDP (in absolute terms) against the first revised estimates of GDP for the year Fiscal Year 2023 of Rs.160.71 lakh crore. Real GDP has been estimated to grow by 8.2% in FY 2023-24 as compared to the growth rate of 7.0% in FY 2022-23. Nominal GDP has witnessed a growth rate of 9.6% in FY 2023-24 over the growth rate of 14.2% in FY 2022-23. (Source: Press Note on provisional estimates of annual GDP for 2023-24 and quarterly estimates of GDP for Q4 of 2023-24, Ministry of Statistics and Programme Implementation, Government of India). The global economy is continuing growing at a modest pace, according to the OECD's latest Economic Outlook. The Economic Outlook projects steady global GDP growth of 3.1% in 2024, the same as the 3.1% in 2023, followed by a slight pick-up to 3.2% in 2025. The table given below sets forth a comparison between India's real GDP growth rate along with its expected real GDP growth rate for 2024 and 2025, as compared to advanced economies, newly emerging economies and the world. Overview of the Infrastructure Sector in India: The infrastructure sector is a key driver of the Indian economy. The sector is highly responsible for propelling India's overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. The infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. In other words, the infrastructure sector acts as a catalyst for India's economic growth as it dr ives the growth of the allied sectors like townships, housing, built-up infrastructure, and construction development projects. FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.61 billion and US$ 33.91 billion, respectively, between Fiscal 2001 to 2024. (Source: Infrastructure Sector in India, May 2024). In the Fiscal Year 2020, the Government focused on enhancing expenditure in the infrastructure sector and has planned to invest more than Rs. 111 Crore in the infrastructure sector in the next five years as part of the National Infrastructure Pipeline ("NIP") announced in December 2019 (Source: A Strong V-shaped recovery of Economic Activity, January 2021, PIB Delhi). In 2019, the Government of India adopted a forward-looking programmatic approach towards infrastructure. The National Infrastructure Pipeline was born with a projected investment of around Rs.111 lakh crore for FY20-25 for developing a comprehensive view of infrastructure development in the country. The NIP which had started with 6,835 infrastructure projects has expanded to around 9,000 projects across 35 sub-sectors and covers economic and social infrastructure projects jointly funded by the Central Government, State Governments, and the private sector. (Source: Union Budget 21-22 provided capital outlay of Rs.5.54 lakh crore, an increase of 34.5% over Budget Estimate of FY 2020-21, to boast economy after COVID-19 pandemic, December 2021, PIB Delhi). Out of the total capital outlay under the NIP, 40% are under implementation, 30% are at a conceptual stage and 20% are under development stage (Source: Task Force on National Infrastructure Pipeline presents its Final Report to Finance Minister Smt. Nirmala Sitharaman, April 2020, PIB Delhi). Overview of the Road Sector in India: Road Network in India India has the second largest road network in the world, spanning a total of 66.71 Lakh km (Source: Year End Review 2023-Ministry of Road Transport and Highways, January 2024, PIB Delhi). This road network primarily comprises national highways, expressways, state highways, major district roads, other district roads and village roads. Road network in India can be classified into the following categories: National Highways constitute the primary system of road transportation in India, which facilitates medium and longdistance inter-city passenger and freight traffic across the country. State Highways constitute the secondary system of road transportation in India, which facilitates the traffic across major centers within the states. District Roads primarily link and provide accessibility within the districts and provide the secondary function of linkage between the highways and rural roads. Rural Roads are a key component of rural development providing accessibility to the villages to meet their social needs as also act as the means to transport agriculture produce from village to nearby markets. Approximately 5,248 km of National Highways (NH) was constructed in 2023-2024 (upto November 2023) (Provisional Figures). The length of the National Highways has increased by more than 60% from 91,287 km in 2014 to around 146,145 km in 2023. As of November 2023, the length of the National Highways is 1,46,145 Km. Pace of construction of NH roads increased from 12.1 km per day in Fiscal Year 2015 to 36.5 km per day in Fiscal Year 2021 and was around 28.6 km per day in Fiscal Year 2022.

Company History

(Registered in the Republic of India as an irrevocable trust set up under the Indian Trusts Act, 1882 on September 25, 2023, pursuant to the Trust Deed read along with Amendment to the Trust Deed dated October 10, 2024 in Gurugram, Haryana, India and registered as an infrastructure investment trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, as amended, ("SEBI InvIT Regulations") on March 7, 2024 having registration number IN/INVIT/23-24/00029. Subsequently, the Trust was issued an updated certificate of registration dated October 16, 2024, bearing registration number IN/InvIT/23-24/0029, pursuant to change of name of the Trust from "National Infrastructure Trust" to "Capital Infra Trust" in accordance with the SEBI InvIT Regulations.)

Growth Strategy

• Goal to maintain optimum capital structure to maximise distributions to Unitholders.
• Goal to maintain optimum capital structure to maximise distributions to Unitholders.
• Active asset management.
• Active asset management.
• Expand the portfolio of road assets.
• Expand the portfolio of road assets.