An infrastructure fund managed by the alternative investment arm of the Mumbai-based Edelweiss Group is floating the initial public offering of an infrastructure investment trust (InvIT) focused on the highways sector.
The InvIT, Citius TransNet Investment Trust, seeks to raise Rs 1,340 crore ($148 million) by selling units in the IPO, according to its draft offer document. It will use Rs 1,235 crore of the proceeds to acquire 10 road assets and their two holding companies, and the remaining for general corporate purposes.
The InvIT’s sponsor is Epic TransNet Infrastructure Pvt Ltd, which is wholly owned by schemes of the Infrastructure Yield Trust, an alternative investment fund managed by EAAA India Alternatives Ltd. EAAA India is the alternative investment arm of the Edelweiss Group.
The InvIT’s initial portfolio of road assets will comprise 10 toll and annuity projects and the holding companies–Epic Concesiones 3 Pvt Ltd and SRPL Roads Pvt Ltd. Epic, in turn, counts Larsen & Toubro and Canada Pension Plan Investment Board as investors. SRPL Roads was earlier known as Sekura Roads. The 10 highway assets comprise a total of 3,406.71 lane-kilometers across nine Indian states.
The InvIT also plans to enter into an agreement that grants a right of first offer for the acquisition of 11 hybrid annuity model (HAM) road assets held or to be acquired by EAAA.
EAAA India operates a multi-strategy platform in alternative assets, offering yield solutions to global pension funds, insurers and ultra-HNIs. As of September 30, 2024, it ranked third among infrastructure investment managers in India by AUM, overseeing three of India’s 14 infrastructure-focused funds, per a Crisil report.
For FY25, the trust reported revenue of Rs 1,987 crore and a net loss of Rs 417.7 crore.
Axis Capital, Ambit and ICICI Securities are the book-running lead managers for the issue.
