Bharat Highways Invit IPO consists of a fresh issue of 2,500 crore shares. The company seeks funds for SPVs’ loan repayments and general expenses.
Bharat Highways Invit IPO – Important Details
| Bharat Highways Invit IPO Date | February 28, 2024 to March 1, 2024 |
| Bharat Highways Invit IPO Listing Date | March 6, 2024 |
| Bharat Highways Invit IPO Price | INR 98-100 per share |
| Bharat Highways Invit IPO Lot Size | 150 Shares |
| Bharat Highways Invit IPO Total Issue Size | INR 2,500 crores |
| Bharat Highways Invit IPO Basis of Allotment | March 4, 2024 |
| Bharat Highways Invit IPO Initiation of Refunds | March 5, 2024 |
| Bharat Highways Invit IPO Credit of Shares to Demat | March 5, 2024 |
| Bharat Highways Invit IPO Issue Type | Book Built Issue |
| Bharat Highways Invit IPO Listing At | BSE NSE |
Bharat Highways Invit IPO – Company Profile
Bharat Highway, an Indian infrastructure investment trust, operates under SEBI InvIT Regulations, acquiring and managing a diverse portfolio of infrastructure assets across the country.
The Sponsor, proficient in transportation engineering testing services, operates a NABL-accredited laboratory. Its Associate, NMHPL, excels in road construction with over six years of experience, ensuring compliance with SEBI InvIT Regulations.
The initial portfolio comprises seven road assets operating on a HAM basis across Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. These roads are operated under NHAI concession rights and are owned by Project SPV, wholly owned by GRIL.
Bharat Highways Invit IPO – Fundamental Analysis
Bharat Highways Invit’s IPO financials reveal a mixed performance with declining revenue but significant profitability improvements and enhanced financial stability, presenting a nuanced investment opportunity in the infrastructure sector that demands careful consideration of its long-term prospects.
Revenue Trends:
The company experienced a decline in revenue from ₹21,539.65 million in 2021 to ₹15,094.87 million in 2023. This downward trend may raise concerns about the company’s revenue-generating capabilities and market conditions affecting its operations.
Equity Growth:
Equity has seen a substantial increase, doubling from ₹5,273.35 million in 2021 to ₹11,172.50 million in 2023, indicating strong investor confidence and capital infusion, possibly for expansion or debt reduction.
Profitability:
Profit after tax significantly improved, with a notable increase to ₹5,270.47 million in 2023 from ₹1,494.46 million in 2021. This remarkable growth in profitability suggests improved operational efficiency or cost management.
Diluted EPS:
The Diluted EPS has seen an extraordinary increase, suggesting a substantial growth in earnings available to shareholders, from ₹810.56 in 2021 to ₹2703.55 in 2023.
Asset and Liability Management:
Total assets have consistently grown, indicating ongoing investment in the company’s operational capacity and potential for future growth. While total liabilities have also increased, decreasing the debt-equity ratio from 6.16 in 2022 to 3.36 in 2023 suggests improved financial stability and reduced leverage.
Debt Equity Ratio:
The reduction in the debt-equity ratio indicates a healthier balance sheet, moving towards a more sustainable capital structure.
Bharat Highways Invit IPO Financial Information
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in Million) | 21,539.65 | 15,857.02 | 15,094.87 |
| Equity (₹ in Million) | 5,273.35 | 5,902.03 | 11,172.50 |
| Expenses (₹ in Million) | 19,360.71 | 15,158.61 | 8,164.86 |
| Profit and Loss After Tax (₹ in Million) | 1,494.46 | 628.68 | 5,270.47 |
| Diluted EPS only (₹) | 810.56 | 1999.7 | 2703.55 |
| Total Assets (in millions) | 49,439.46 | 55,363.95 | 60,562.79 |
| Total Liabilities (in millions) | 44,166.11 | 49,461.92 | 49,390.29 |
| Debt Equity Ratio | 5.14 | 6.16 | 3.36 |
Bharat Highways Invit IPO Peer Comparison
The IRB InvIT Fund has a Net Asset Value per Unit of ₹100.63, currently trading at a discount of 30.45% to its Net Asset Value. This information suggests cautious investor sentiment or market undervaluation of its underlying assets.
| Particulars | Net Asset Value per Unit (₹)* | Premium / (Discount to Net Asset Value)%** |
| IRB InvIT Fund | 100.63 | (30.45)% |
Bharat Highways Invit IPO Objective
The main objective of Bharat Highways Invit is to provide funds for SPVs’ loan repayments.
- Providing loans to the Project SPVs for repayment/ prepayment, in part or in full, of sure of their respective outstanding loans and NCDs issued by GDHPL and GASHPL: The company aims to utilize a portion of the Net Proceeds to provide InvIT Loans for Project SPVs, enabling repayment/prepayment of outstanding loans and NCDs issued by GDHPL and GASHPL, considering factors like interest rates, prepayment penalties, and legal requirements.
- General purposes: The company aims to deploy the balance funds towards the general goals, including covering business expenses, emergencies, and approved purposes while adhering to SEBI regulations.
Bharat Highways Invit IPO Risks And Challenges
Bharat Highways Invit’s risk includes InvIT’s lack of operating history, which affects funding, taxes, and asset acquisition. NHAI annuities are crucial for distributions, while maintenance obligations and NHAI tests pose further challenges.
- InvIT needs operating history, hindering performance assessment. Challenges include funding, tax regulations, and asset acquisition, affecting revenue generation and distribution projections. Historical data may not ensure future performance.
- NHAI pays fixed semi-annual annuities for InvIT Assets, which are critical for distributions. Projections show revenue expectations. Forward-looking statements indicate potential impacts on business from revenue fluctuations.
- InvIT Assets require regular maintenance for factors like natural disasters. Concession Agreements mandate 15-year maintenance obligations. NHAI conducts quality tests, and failure to meet standards results in penalties, withheld payments, and possible contract termination.
Bharat Highways Invit IPO – Industry & Market Potential
The government prioritizes infrastructure, leading to increased public investment. The sector includes roads, railways, power, ports, telecom, and aviation. Major projects require significant capital. Reforms drive robust growth.
India boasts the world’s second-largest road network, spanning 6.33 million km. It comprises national, state, district, and rural roads, facilitating inter-city and intra-state traffic, rural development, and agricultural transportation.
The Bharatmala Pariyojana is a government initiative aiming to enhance efficiency in freight and passenger movement across India by developing economic corridors, inter-corridors, and feeder routes, among other interventions, to address critical infrastructure gaps.
Bharat Highways Invit IPO – Type of Offer
Bharat Highways Invit will have a fresh issue of 2,500 crore shares. The company seeks funds for SPVs’ loan repayments and general expenses.
Bharat Highways Invit IPO Offer Size
The size of the offer of Bharat Highways Invit is INR 2,500 crores. The company seeks funds for SPVs’ loan repayments and general expenses.
Bharat Highways Invit IPO Allotment Structure
Bharat Highways Invit allocation will be as follows: 75% for Non-Institutional Investors (NII) and 25% for Institutional Investors (II) in accordance with SEBI regulations.
● Non-Institutional Investors (NII): 75% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Institutional Investors (II): The remaining 25% of the shares will be allotted to Institutional Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Bharat Highways Invit IPO?
To apply for the Bharat Highways Invit IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Bharat Highways Invit IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Bharat Highways Invit Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Bharat Highways Invit IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Bharat Highways Invit IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Bharat Highways Invit IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Bharat Highways Invit IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the Bharat Highways Invit IPO registrar. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Bharat Highways Invit IPO Offer Registrar
The registrar for the Bharat Highways Invit IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower B, Plot No. 31, 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad, 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Bharat Highways Invit IPO FAQs
The allotment date of Bharat Highways Invit IPO is March 4, 2024.
The price band of the shares issued by the company is INR 98-100 per share.
Bharat Highways Invit IPO consists of a fresh issue of 2,500 crore shares. The company seeks funds for SPVs’ loan repayments and general expenses.
The listing date of Bharat Highways Invit IPO is March 6, 2024.
