On Day 3, the subscription status of Bharat Highways Infrastructure Investment Trust (InvIT) stands at 3.12 times, showing a healthy investor interest in the offering. This robust response underscores the market’s confidence in the InvIT’s potential and its attractiveness as an investment opportunity within the infrastructure sector.
Bharat Highways Invit – Fundamental Analysis
Bharat Highways Invit’s IPO analysis reveals mixed financials with declining revenues but significant gains in profitability and financial health, pointing to a complex investment scenario in infrastructure. Revenue dipped from ₹21,539.65 million in 2021 to ₹15,094.87 million in 2023, while equity doubled, reflecting investor trust. Profit after tax soared, and Diluted EPS increased markedly, indicating enhanced shareholder earnings. Assets grew steadily, liabilities were managed well, and a lower debt-equity ratio in 2023 highlights improved stability, presenting a multifaceted investment picture.
Bharat Highways Invit – Risks And Challenges
Bharat Highways Invit faces risks due to its limited operating history, impacting performance analysis, funding, taxation, and asset acquisition. This lack of history makes future revenue and distribution predictions uncertain. Revenue largely depends on NHAI’s fixed semi-annual annuities, essential for cash distributions. Additionally, Invit’s assets demand consistent maintenance, including meeting NHAI’s stringent 15-year maintenance obligations and quality standards, with non-compliance leading to penalties or potential contract termination, further complicating their operational landscape.
