Bharat Highways InvIT IPO: fundamentals and financials

Bharat Highways Infrastructure Investment Trust (InvIT) is set to launch its initial public offering (IPO) on February 28, 2024, raising ₹2,500 crore through a fresh issue of 25 crore shares. Bharat Highways is an infrastructure investment trust that works toward acquiring, managing, and investing in infrastructure projects in the country. This blog delves into the key details of the Bharat Highways IPO, helping you decide if it aligns with your IPO investment goals.

Key details of the Bharat Highways IPO

Let us have a look at the fundamentals of the upcoming IPO of Bharat Highways InvIT. 

• Issue Type: Fresh Issue
• Issue Size: ₹2,500 crore
• Price Band: ₹98 - ₹100 per share
• Open Date: February 28, 2024
• Close Date: March 1, 2024
• Listing Date (Tentative): March 6, 2024
• Minimum Investment: ₹15,000 for Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB)

Important Note: The Bharat Highways IPO has no retail portion. Only non-institutional investors (NII) and qualified institutional bidders (QIB) can subscribe.

About Bharat Highways InvIT

Bharat Highways was established as an infrastructure investment trust to invest in Indian infrastructure assets. The company currently owns and operates seven toll roads across Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh. The company holds a provisional AAA rating from CRISIL, CARE, and India Ratings which might add more credibility to its upcoming IPO.

Bharat Highways IPO financials

• Revenue decreased by 3.92% in FY2023 compared to FY2022.
• Profit after tax (PAT) witnessed a significant rise of 738.34% in FY2023 compared to FY2022.

Before you subscribe to the Bharat Highways IPO, consider this

• Limited investor participation: This IPO is not open to retail investors, restricting participation to institutional investors and high-net-worth individuals (HNIs).
• Recent revenue decline: While the company saw a substantial increase in PAT, the recent revenue decline might raise concerns about growth prospects.
• Infrastructure investment: Investing in infrastructure projects can offer stable returns, but also carries inherent risks associated with the sector.

Conclusion

The Bharat Highways InvIT IPO caters specifically to NII and QIB investors seeking exposure to the Indian infrastructure sector. While the AAA rating and recent PAT growth might be attractive, consider the limited participation options, recent revenue decline, and inherent sector risks before making an investment decision. As with any investment, conduct thorough research, understand the risks involved, and consult a financial advisor before investing.

Disclaimer: This blog is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.