NHAI InvIT minimum investment at Rs 10,000: Gadkari says India’s growth possible when led by common people

"My focus is to pass InvIT’s benefit to retired citizens and salaried class people. Presently most of them are investing in Fixed Deposits having comparatively lower returns," Gadkari said in a video message during a press meet to announce the NCDs.

So far, NHAI InvIT has raised more than Rs 8000 crore from foreign and Indian institutional investors.

"Now they are looking to raise additional Rs 3800 crore, of which Rs. 1500 crore is being raised through issue of Non-Convertible Debentures (NCDs), with a long-dated maturity of 25 years," the minister said.

The NCDs launched through the National Highways Infra Trust (NHIT)-- a registered infrastructure investment trust under the InvIT Regulations, sponsored by  National Highways Authority of India (NHAI) ---  are secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs 1,000 each.

The NCDs comprise three separately transferable and redeemable principal parts (STRPP) namely 1 STRPP A of face value of Rs 300, 1 STRPP B of face value of Rs 300 and 1 STRPP C of face value of Rs 400.

The issue opens on Monday, October 17, 2022 and closes on Monday, November 7, 2022 with an option of early closure.

These InvIT bonds have been rated AAA by two rating agencies and will be listed on BSE and NSE providing an opportunity for investors to invest and trade as any other popular stock market instrument.

The biggest advantage of InvIT instrument is that it has stable and predictable cash flows, Gadkari said listing the benefits for retail investors.

To encourage retail investors, the minimum investment amount has been kept low at Rs 10,000 so that a common person can participate in it.

"With that in mind, 25 percent of the InvIT Bonds issued would be reserved for retail investors. The coupon is 7.9 percent payable half-yearly, which works out to 8.05 percent interest for the year," he highlighted.

Gadkari said this is an attractive opportunity to make investments from a long-term perspective in the current environment. "It presents the Win-Win opportunity for investors and the NHAI."

The minister said that retail investors will get healthy returns on their investments as "we are also open to credit the return on investment in a monthly cycle." This will take care of the needs of retired citizens, he said.

Gadkari stressed that the role of the masses would be significant in driving India's development.

"I believe that India’s growth is only possible when it will be led by its own people. The common Indian person, collectively, has the power to shape our future and achieve the goal of making India a Super-Power," he asserted.

Huge investments in infrastructure, especially roads, will play a major role to achieve Prime Minister Narendra Modi's dream of making India a $5 trillion economy by 2025.

In this direction, the government under the National Monetisation Pipeline, plans to monetize assets worth Rs 6 lakh crore, so that the funds raised can be utilised to build new infrastructure.

"Here again, National Highways Authority of India(NHAI) has the largest share of 27 percent under the National Monetization Pipeline," Gadkari said.

NHAI launched its Infrastructure Investment Trust (InvIT) last year not only to facilitate monetisation of roads but also to attract foreign and domestic institutional investors to invest in the roads sector, he said.

Noting development in road infrastructure, Gadkari emphasised that India's road network is now 63 lakh km and 86 percent of passenger and 67 percent of freight traffic. 

"We have given special emphasis on connecting the farthest and remotest parts of the country, such as North Eastern parts of the country through national highways," he said adding that the government is also working hard to provide all-season connectivity to the religious and tourist places in India.

The proposed issue has a base issue size of Rs 750 crores with an option to retain oversubscription up to Rs 750 crores, aggregating up to Rs 1,500 crores, said Suresh Goyal, MD & CEO of National Highways Infra Trust

NHAI InvIT has also filed a prospectus with SEBI for the issuance of Non-Convertible Debentures (NCDs) to raise Rs 1,500 crore.