NHIT Boosts Preferential Unit Issuance to ₹4,034 Crore; Adds NHAI, EPFO as Allottees

NHIT plans to issue up to 4.03 crore preferential units, increasing its previous plan of 3.025 crore units.
The total issue size stands at 20.17 crore units, including an institutional placement component.

Reader Takeaway: Capital for road projects secured; regulatory approvals and pricing are key watchpoints.

What just happened (today’s filing)

National Highways Infra Trust (NHIT) has issued an addendum to its 6th Extra-Ordinary Meeting notice, revising its planned preferential unit issuance.

The trust now intends to issue up to 4.03 crore units, a notable increase from the previously planned 3.025 crore units.

Eligible allottees for this issuance have been expanded to include the National Highways Authority of India (NHAI) and the Central Board of Trustees, Employees Provident Funds (EPFO).

The total issue size, encompassing both preferential and institutional placements, is set at 20.17 crore units.

Why this matters

This move signifies NHIT's intent to infuse significant capital into its portfolio, primarily to fund investments in its 'Round 5 Roads' projects.

The inclusion of NHAI and EPFO as eligible allottees can alter the trust's unitholding structure, potentially bringing in strategic long-term investors.

This capital infusion is critical for NHIT's ongoing asset acquisition and development strategy, aligning with NHAI's broader asset monetisation goals.

The backstory (grounded)

NHIT, sponsored by NHAI, was established in 2020 to monetize operational road assets, acting as a key vehicle for capital recycling in the infrastructure sector.

Since its listing in November 2021, NHIT has completed several fundraising rounds, acquiring numerous road assets and growing its portfolio to include 26 projects spanning over 2,355 km.

The trust has a track record of attracting significant investment from both domestic and international institutional investors, including pension funds.

The proposed acquisition of 'Round 5 Roads' for a base consideration of ₹6,220.90 Crore represents a significant expansion, adding to its existing asset base.

What changes now

• NHIT's unitholder base is set to expand with the potential inclusion of NHAI and EPFO.
• Increased capital availability will directly fund the acquisition and development of 'Round 5 Roads' projects.
• The revised unit issuance offers a larger quantum of capital, supporting NHIT's aggressive growth trajectory.

Risks to watch

• The successful allotment of units is contingent on obtaining necessary approvals from statutory and regulatory authorities.
• The final issue price will be determined per SEBI InvIT Regulations, at or above the floor price of ₹147.50, while also considering the Trust's Net Asset Value (NAV) of ₹145.76 as of December 31, 2025.

Peer comparison

NHIT operates in the infrastructure investment trust (InvIT) space, competing for investor capital with peers like IRB InvIT Fund, which also focuses on road assets, and India Grid Trust (IndiGrid), which operates in the power transmission sector.

While IRB InvIT Fund manages road assets valued at approximately ₹7,250 Cr, NHIT's portfolio is substantially larger, comprising 26 road projects aggregating 2,355 km.

Context metrics (time-bound)

• The Net Asset Value (NAV) per unit stood at ₹145.76 as of December 31, 2025 (Q3 FY26).
• The floor price for the preferential issue has been set at ₹147.50 per unit.

What to track next

• Unitholder approval of the revised preferential issue at the Extra-Ordinary Meeting on March 12, 2026.
• Obtaining all requisite statutory and regulatory clearances for the unit issuance.
• The final determination of the issue price within the specified regulatory framework.
• Completion of the unit allotment process to NHAI, EPFO, and other eligible institutional investors.