Raajmarg Infra Investment Trust is exploring a new share issuance to fund the acquisition of additional toll road assets. Following its ₹6,000 crore IPO earlier this year, the trust aims to expand its unit holder base and leverage its right of first offer with the NHAI. Investors may track the trust's transition from early-stage cash flow challenges to projected revenue growth.
Detailed Coverage
Raajmarg Infra Investment Trust (RIIT), which entered the public market in March 2026, is reportedly evaluating options for a follow-on share issuance. The trust is considering a qualified institutional placement or a follow-on public offer to raise capital for acquiring new infrastructure projects. This potential fundraise comes shortly after the trust successfully concluded its initial public offering, which raised ₹6,000 crore and saw strong interest from institutional buyers.
Expanding Asset Portfolio and Investor Base
The trust's primary growth strategy involves the acquisition of toll road projects to generate steady long-term income for unit holders. A key component of this strategy is the Right of First Offer agreement RIIT holds with the National Highways Authority of India (NHAI). This agreement gives the trust the first opportunity to acquire approximately 1,500 km of road assets over the next three to five years. By seeking fresh capital, the trust aims to fund these acquisitions while increasing participation from individual investors, who currently hold a small portion of the trust's total units.
Financial Transition and Cash Flow Outlook
Investors looking at RIIT should consider its current financial stage. Registered in late 2025, the trust reported a negative distributable cash flow of ₹3.7 crore for the fiscal year ending March 2026. Because InvITs are designed to distribute most of their earnings to investors, cash flow stability is a crucial metric for evaluating the trust's performance. Projections from market analysts suggest a shift in the coming years, with combined cash flows estimated to reach ₹862 crore by fiscal 2027 and exceeding ₹1,000 crore by fiscal 2028. These projections rely on the successful integration of new road assets and consistent toll collections across the highway network.
Sector Context and Market Positioning
As the first NHAI-sponsored listed InvIT, RIIT operates in a sector that benefits from the government's push to monetize infrastructure assets and lower debt pressure on road developers. The success of the trust’s expansion plans will depend on its ability to identify projects that meet its specific return criteria. While higher vehicle traffic typically supports toll collections, investors should monitor the trust’s ability to manage acquisition costs and maintain project quality. The final decision on the share issuance and the total amount raised will likely depend on valuations of the assets identified by the trust's advisers in the coming months.