The National Highways Authority of India (NHAI) has approved a ₹6,220 crore bid from the National Highways Infrastructure Trust (NHIT) for the acquisition of two operational highway stretches. This marks the fifth round of asset monetisation under NHIT and reinforces NHAI’s structured strategy to unlock capital from mature road assets.
Upon closure of the transaction—expected by March—NHIT will secure toll collection rights for a 20-year concession period. The deal will be concluded once the trust remits ₹6,220 crore or a higher finalised amount.
Details of the Highway Assets
The acquisition includes two toll-operational road corridors located in Maharashtra and Andhra Pradesh, covering a total length of 311 km.
The stretches are:
- Amravati–Chikhali–Tarsod (Maharashtra): 256.7 km
- Gundugolanu–Chinna Avutapalli–Vijayawada (Andhra Pradesh): 54.38 km
These corridors will now be integrated into NHIT’s expanding toll-yielding portfolio.
Funding Structure and Capital Raising Plan
Following board approval, NHAI will initiate capital mobilisation through a combination of equity and debt instruments. NHIT plans to issue fresh units to:
- Sponsor NHAI
- Anchor investors
- Institutional investors
In parallel, debt financing is expected to be secured from banking institutions to complete the funding structure.
To date, NHIT has enabled NHAI to mobilise ₹43,638 crore by monetising 2,345 km of highway projects across four earlier rounds. With this fifth tranche, cumulative funds raised through NHIT will cross ₹49,800 crore.
Current Shareholding Pattern of NHIT
NHAI retains an 11.07% stake in NHIT. The largest investors in the trust continue to be global pension funds:
- CPP Investment Board: 19.95%
- Ontario Teachers’ Pension Plan Board (via Ontario Ltd): 19.95%
Other key stakeholders include domestic mutual funds, pension funds, and Singapore-based Nitro Asia Holdings, which recently acquired a 12% stake for ₹2,905 crore.
Expanded Monetisation Strategy: RIIT and ToT Models
Beyond NHIT, NHAI is advancing additional monetisation avenues. The authority is preparing to launch the inaugural public offering of Raajmarg Infra Investment Trust (RIIT). This InvIT aims to raise approximately ₹9,500 crore through the monetisation of five highway stretches spanning 260 km.
Retail participation is expected to account for 10% of the equity base, translating to roughly ₹600–700 crore. The public issue is likely to be launched later this month.
Additionally, during the current financial year, NHAI has already mobilised ₹12,357 crore through two rounds of the Toll Operate Transfer (ToT) model. Looking ahead, the authority has identified 24 highway assets covering 1,472 km for monetisation in FY 2025–26, with a target of raising nearly ₹30,000 crore.
Summary
NHAI has approved a ₹6,220 crore acquisition of two highway stretches by NHIT, marking the trust’s fifth monetisation round. The 311 km of road assets will provide NHIT with 20-year toll collection rights. With this transaction, total funds raised via NHIT will approach ₹50,000 crore. Alongside NHIT, NHAI is also progressing with RIIT’s ₹9,500 crore public issue and has set a ₹30,000 crore monetisation target for FY 2025–26 through additional InvIT and ToT models.
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