Raajmarg InvIT IPO Fully Subscribed 1.05x on Day 2

Introduction to the Raajmarg InvIT IPO

The initial public offering (IPO) of the National Highways Authority of India (NHAI)-sponsored Raajmarg Infra Investment Trust (InvIT) achieved full subscription on its second day. The offering, which aims to raise ₹6,000 crore, marks a significant step in monetizing India's national highway assets and broadening public participation in the country's infrastructure growth. Investor response was robust, pushing the overall subscription to 1.05 times by the end of bidding on Thursday, March 12, 2026.

Detailed Subscription Status

On the second day of the three-day bidding window, the IPO received bids for 22,30,37,100 units against the 21,33,33,150 units on offer. The demand was primarily driven by the 'Other Investors' category, which includes non-institutional investors (NII), subscribing 1.47 times their allotted portion. The category for institutional investors saw a subscription of 0.62 times. The subscription figures showed steady momentum, growing from just 0.16 times on the first day to being fully subscribed by the end of the second day.

Strong Backing from Anchor Investors

Prior to the public opening, Raajmarg Infra InvIT successfully raised ₹1,728 crore from a diverse group of anchor investors. This strong initial backing signaled confidence in the InvIT's potential. Prominent participants in the anchor round included Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, and Bajaj Life Insurance. Other key investors such as Aditya Birla Sun Life Insurance and various pension funds managed by SBI, UTI, and ICICI Prudential also contributed, highlighting broad institutional support for the offering.

IPO Structure and Key Dates

The public issue consists entirely of a fresh issue of 60 crore units, priced in a band of ₹99 to ₹100 per unit. With a minimum lot size of 150 units, the minimum investment required from an applicant is ₹15,000. The bidding process, which commenced on March 11, is set to conclude on March 13, 2026. The units are expected to be listed on both the BSE and NSE.

Portfolio of Underlying Assets

The InvIT's initial portfolio comprises five operational toll road assets located across the states of Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka. These roads, spanning over 260 kilometers, are part of the crucial Golden Quadrilateral project. The assets operate under the Toll-Operate-Transfer (TOT) model, where the right to collect tolls is granted by the NHAI for a specific concession period. This structure provides a steady and predictable revenue stream for the trust.

Objective of the Public Offering

The primary objective of the ₹6,000 crore issue is to unlock the value of these national highway assets. According to the offer documents, approximately ₹5,850 crore from the net proceeds will be used to infuse debt and equity into the project's Special Purpose Vehicle (SPV). This SPV will, in turn, use the funds to pay the concession value for the assets to the NHAI. A smaller portion of the proceeds is allocated for general corporate purposes.

Market Context and Significance

Infrastructure Investment Trusts (InvITs) have become a popular instrument for monetizing operational infrastructure assets in India. They allow developers to free up capital while offering investors, including retail participants, an opportunity to invest in income-generating infrastructure projects. The sponsorship by NHAI, a government body with a strong track record in the highways sector, provides an added layer of credibility and operational support to the Raajmarg InvIT.

Analysis and Forward Outlook

The successful subscription on the second day indicates strong market appetite for stable, yield-generating assets, especially those backed by government entities. The performance of the 'Other Investors' category suggests that high-net-worth individuals and other non-institutional players are keen on participating in India's infrastructure story. As the IPO heads into its final day, the focus will be on the institutional category to see if it reaches full subscription. The successful listing of this InvIT will likely encourage further monetization of public infrastructure assets through similar financial instruments.

Conclusion

The Raajmarg Infra InvIT IPO has garnered significant investor interest, achieving full subscription ahead of its final day. Backed by the NHAI and a portfolio of revenue-generating toll roads, the issue presents a long-term investment opportunity. With the bidding set to close on March 13, all eyes will be on the final subscription numbers and the subsequent market listing scheduled for March 24, 2026.