Capital Infra Trust's board approved raising ₹10.41 crore in indemnity claims against its sponsor, Gawar Construction Limited. The Trust is also evaluating a Right of First Offer for six SPVs, potentially leading to a capital raise.
Capital Infra Trust Board Approves ₹10.41 Crore Indemnity Claims, Evaluates Sponsor's SPVs
**Indemnity Claims:** ₹10.41 crore **SPVs for Evaluation:** 6 Reader Takeaway: Indemnity claims secure funds; ROFO evaluation signals growth potential with possible capital raise. ## What just happened The Board of Capital Infra Trust met on June 29, 2026, and approved raising indemnity claims totaling ₹10.41 crore against its Sponsor, Gawar Construction Limited. These claims stem from shortfalls related to GST on annuity payments under the Share Purchase Agreements. Additionally, the Trust received a Right of First Offer (ROFO) notice from Gawar Construction Limited for six Project Special Purpose Vehicles (SPVs). The Board has authorized an evaluation of this opportunity, which may involve appointing consultants and advisors. ## Why this matters The approval of indemnity claims signifies a proactive move by the Trust's management to recover funds due to 'change in law' events concerning GST. This aims to protect the financial health of the Trust's underlying projects. The evaluation of the ROFO for six SPVs indicates a potential for inorganic growth, which could expand the Trust's asset base. ## The backstory Capital Infra Trust is an infrastructure investment trust. Gawar Construction Limited is its sponsor. The claims relate to discrepancies in Goods and Services Tax (GST) on annuity payments, a common issue in infrastructure projects when tax laws change. ## What changes now The Trust will now proceed with raising the approved indemnity claims against Gawar Construction Limited. Simultaneously, it will begin evaluating the ROFO for the six SPVs. This evaluation process may include appointing external consultants for due diligence and seeking advisory services. ## Risks to watch Any potential capital raise associated with acquiring the six SPVs could lead to unit dilution for existing unitholders or impact the Trust's capital structure. The terms and success of the indemnity claims also remain a point to monitor. ## Peer comparison Infrastructure Investment Trusts (InvITs) often navigate 'change in law' provisions and sponsor-related transactions. The proactive claim recovery and strategic evaluation of new assets are typical activities for managing portfolio growth and financial stability within the InvIT sector. ## Context metrics (time-bound) The claim for Hardiya Hasanpur Highway Private Limited is noted as due by June 30, 2026. The Board has also proposed Mr. S. Sundararaman as the Registered Valuer for FY 2026-27, pending Unitholder approval. ## What to track next Investors should closely follow the progress of the ROFO evaluation for the six SPVs and any further announcements regarding a potential capital raise. The resolution of the ₹10.41 crore indemnity claims will also be a key development to watch.
