The initial public offering (IPO) of Capital Infra Trust, an infrastructure investment trust (InvIT), will close today, January 9, 2025. The IPO, which opened on January 7, has been a topic of interest for investors. Here are the key highlights and updates about this public offering.
IPO Details
- Price Range: The units are being offered at a price range of ₹99 to ₹100 per unit.
- Issue Size: The total IPO size is ₹1,578 crore. This includes:
- Offer for Sale (OFS): Units worth ₹501 crore are being sold by the sponsor, Gawar Construction Ltd.
- Fresh Issue: New units worth ₹1,077 crore are being offered.
- Investor Allocation:
- 75% of the issue is reserved for institutional investors.
- 25% is set aside for non-institutional investors.
- Listing: Upon listing, the units will be available for trading on both the BSE and NSE.
Subscription Status
As of Wednesday, January 8, the IPO had been subscribed 78%. This means investors have placed bids for 6.85 crore units out of the 8.83 crore units available. Here’s how the different investor categories responded:
- Institutional Investors: Only 4% subscribed.
- Other Investors: 1.67 times subscribed.
On the first day of bidding, January 7, the IPO saw a subscription rate of 39%.
The grey market premium for the IPO is currently at ₹0. This indicates that the units are trading at the issue price of ₹100 in the grey market, with no premium or discount.
Experts suggest that the GMP trend has shown little to no change over the last nine sessions. They expect this trend to remain stable until the listing day.
Formed in September 2023, Capital Infra Trust was designed to function as an Infrastructure Investment Trust (InvIT). It focuses on investments that align with SEBI’s InvIT regulations. Sponsored by Gawar Construction, the trust aims to invest in infrastructure assets.
Investing in an IPO requires careful consideration of various factors, including the company’s financial health, the industry’s growth potential, and overall market conditions. With a stable GMP and mixed subscription status, investors should analyze their goals and risk appetite before making a decision.
This IPO marks another opportunity for investors interested in infrastructure-focused investment trusts in India.
