Interise Trust to Fully Redeem ₹1,375 Crore NCDs by Mid-June 2026

Interise Trust is set to fully redeem its ₹1,375 crore worth of Non-Convertible Debentures (NCDs) between June 1 and June 14, 2026.
This significant debt reduction is planned following the exercise of its call option.

Reader Takeaway: Debt reduced significantly as NCDs are redeemed; negative ROE remains a concern.

What just happened (today’s filing)

Interise Trust announced the exercise of its call option to fully redeem its outstanding Non-Convertible Debentures (NCDs).

The total face value of these NCDs amounts to ₹1,375 crore.

The redemption process is scheduled to take place within a two-week window, from June 1, 2026, to June 14, 2026.

The record date for this redemption has been set as May 29, 2026.

Why this matters

This redemption will lead to the complete extinguishment of the ₹1,375 crore NCD instrument from Interise Trust's balance sheet.

It signifies a substantial reduction in the company's debt obligations, potentially improving its leverage ratios and reducing future interest burdens.

The backstory (grounded)

Interise Trust, formerly known as IndInfravit Trust, is a prominent Infrastructure Investment Trust (InvIT) in India. The Trust focuses on acquiring, managing, and operating road sector assets, boasting a portfolio of 17 operational road projects spanning approximately 7,300 lane kilometers across eight states.

Established in 2018, Interise Trust was one of the first InvITs listed on NSE and BSE on a private placement basis.

The NCDs being redeemed carry the ISIN INE790Z07053 and have been assigned a strong 'AAA' rating with a stable outlook by ICRA, indicating a high degree of safety regarding timely servicing of financial obligations.

What changes now

• A significant portion of Interise Trust's debt will be paid off.
• The company's interest expenses are expected to decrease in the future.
• Leverage metrics, such as debt-to-equity or debt-to-EBITDA, are likely to improve, subject to other debt levels.
• The balance sheet will become leaner, reflecting reduced financial liabilities.

Risks to watch

Despite the strong ratings and debt reduction, Interise Trust faces certain inherent risks. The company has reported a low interest coverage ratio.

Furthermore, Interise Trust has recorded a low return on equity (ROE) of -5.14% over the last three years, indicating subdued profitability relative to its equity base.

General risks associated with toll road projects include volatility in traffic growth, fluctuations in WPI-linked toll rate escalations, and the potential emergence of alternative routes or transport modes that could impact revenue.

Peer comparison

Direct peer comparisons for specific debt instrument redemptions like NCDs are challenging within the InvIT sector. Interise Trust operates in a specialized infrastructure financing space, and while other infrastructure companies or InvITs exist, their debt structures and financing strategies can vary significantly, making direct comparisons for this specific event difficult.

Context metrics (time-bound)

• Total debt for Interise Trust stood at ₹8,333 crore as of a recent reporting period.

What to track next

• Confirmation of the successful completion of the NCD redemption process by the stipulated deadline in June 2026.
• Any further announcements regarding the formal extinguishment of these NCDs from the company's books.
• Management commentary on future financing strategies and how this debt reduction aligns with overall financial planning.
• Monitoring of the company's profitability metrics, such as ROE, in light of reduced interest expenses.