National Highways Infra Trust NCD Interest Rate Up to 8.05%
[su_accordion] [su_spoiler title=”NCD details and Interest Rates NHIT” style=”fancy” open=”yes” icon=”plus-circle”]NCD/Series Details
| Issuer | National Highways Infra Trust NCD Public Issue 2022 |
| Issue | Rs 750.00 Crores (Base Issue Size Rs. 750Crs with green shoes option of Rs 750Crs) |
| Rating | “AAA; Stable” by CARE Ltd and “ AAA/ Stable” by Indian Ratings & Research Pvt Ltd. |
| Issue opens | October 17th, 2022 |
| Issue closes | November 7th, 2022 |
| Issue Price | Rs. 1,000/- per NCD (For all options of NCDs) |
| Minimum Application | Rs. 10,000/- (10 NCDs) across all Series and in multiples of 1 (one) NCD of Rs. 1,000/- each thereafter |
| Coupon Type | Fixed Coupon Rates |
| Listing | NCDs are proposed to be listed on BSE & NSE within 6 Working Days from the respective Tranche issue Closing Date. |
SPECIFIC TERMS FOR EACH SERIES OF NCDs
| NCDs Options | I | II | III | ||||||
| Frequency of Interest Payment | Semi Annually | Semi Annually | Semi Annually | ||||||
| Minimum Application | Rs 10,000/- (10 NCDs) across all Series and in multiples of 1 (one) NCD thereafter | ||||||||
| Issue Price (Rs. / NCD) | Rs. 1,000/- | ||||||||
| Face Value / Issue Price (Rs. / NCD) | Rs. 1,000/- | ||||||||
| Tenor from Deemed Date of Allotment | 13 Years | 18 Years | 25 Years | ||||||
| Coupon (% per annum) for NCD Holders in Category I,II, III & Category IV | 7.90% | 7.90% | 7.90% | ||||||
| Effective Yield (per annum) for NCD Holders in Category I,II, III and Category IV | 8.05% | 8.05% | 8.05% | ||||||
| Amount (Rs / NCD) on Maturity for NCD Holders in Category I, II, III, IV | Six(6) annual payments of `50 each, starting from 8th Anniversary* until Maturity | Six(6) annual payments of `50 each starting from 13th Anniversary* until Maturity | 8 annual payments of `50 each starting from 18th Anniversary* until Maturity | ||||||
| Maturity / Redemption Date (Years from the Deemed Date of Allotment) | 13 Years | 18 Years | 25 Years | ||||||
| Put and call option | N.A. | ||||||||
| Mode of Interest Payment | Through various options available | ||||||||
[/su_spoiler] [su_spoiler title=”Download NHIT NCD application Form” style=”fancy” open=”no” icon=”plus-circle”] [/su_spoiler] [su_spoiler title=”Who can invest / Apply?” style=”fancy” open=”no” icon=”plus-circle”] The following categories of persons are eligible to apply in the Issue: Category I (Institutional) 10% of the overall issue size
- Resident Public Financial Institutions, Statutory Corporations including State Industrial Development Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorized to invest in the NCDs;
- Provident Funds and Resident Pension Funds with minimum corpus of Rs. 250 million, Superannuation Funds and Gratuity Fund, which are authorized to invest in the NCDs;
- Venture Capital funds and / or Alternative Investment Funds registered with SEBI;
- Insurance Companies registered with the IRDA;
- National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India and published in the Gazette of India);
- Insurance funds set up and managed by the Indian army, navy or the air force of the Union of India or by the Department of Posts, India
- Mutual Funds, registered with SEBI.
- Companies; bodies corporate and societies registered under the applicable laws in India and authorized to invest in the NCDs;
- Educational institutions and associations of persons and/or bodies established pursuant to or registered under any central or state statutory enactment; which are authorized to invest in the NCDs;
- Public/private charitable/religious trusts which are authorized to invest in the NCDs;
- Scientific and/or industrial research organizations, which are authorized to invest in the NCDs;
- Partnership firms in the name of the partners;
- Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership
- Resident Indian individuals or Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10 Lakh across all series of NCDs in Issue.
- Resident Indian individuals or Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs. 10 Lakh across all series of NCDs in Issue.
- The current Ratio and Interest Coverage Ratio remain positive stating that the trust might be able to meet its current interest obligations through its operating profits.
- Debt to Equity ratio also remains very less, giving it a positive indication. It states that the trust might be able to meet its debt obligations through equity in a time of need.
- The debt service coverage ratio and Cash flow to debt ratio remain low, stating that the trust might not be able to service its debt obligations through cash flows and cash profits.
Issue analysis
Pros
- The NCD is AAA rated security with a stable outlook.
- The coupon rate is 7.9% which is much higher than FDs.
Cons
- The debt service coverage ratio is less than 1.5 which indicates lower toll collections therefore less revenue.
- Negative Cash flow, which indicates that they will not be able to service its debt with the available cash flows.
About National Highway Infra Trust
Founded in 2020, National Highway Infra Trust is a registered infrastructure investment trust under the InvIT regulations. It is sponsored by the National Highway Authority of India (NHAI). The trust is established for making investments in special purpose vehicles. The projects include Abu Road Project, Swaroop Ganj Project, Kota and Chittorgarh Bypass Project, Kurnool Highway Project, and Belgaum Project.
[su_spoiler title=”Registrar/allotment Status” style=”fancy” open=”no” icon=”plus-circle”]
Strengths
- Sponsor with extensive experience operating and maintaining projects in India’s roads and highways sector and a solid track record in the field.
- A sizable portfolio of diversified toll road assets that could generate income over the long run.
- Strategic regional positioning of portfolio assets or presence therein.
- Experienced management group with business expertise.
- The execution risk associated with regular and periodic maintenance that needs to be performed in each SPV throughout the concession period affects the underlying SPVs.
- Toll rates and traffic volumes affect toll revenues. Traffic volumes are influenced by a variety of variables, including the project’s location and placement of the road.
NHIT NCD 2022 Registrar
KFin Technologies Limited (formerly, KFin Technologies Private Limited) Selenium, Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi 500 032, Telangana, India Tel: +91 40 6716 2222 E-mail: nhit.ncdipo@kfintech.com Investor Grievance E-mail: einward.ris@kfintech.com Website: www.kfintech.com Contact Person: M. Murali Krishna Compliance Officer: Anshul Kumar Jain SEBI Registration No.: INR000000221 CIN: U72400TG2017PLC117649 Click here to check your allotment statusNATIONAL HIGHWAYS INFRA TRUST
G – 5 & 6, Sector 10, Dwarka, New Delhi – 110 075;
Tel: +91 11 2507 6536; Fax: +91 11 2507 6536;
E-mail: nhit@nhai.org; Website: www.nhaiinvit.in
Chief Financial Officer: Mathew George;
Tel: +91 11 2507 4100; Email: cfo.nhim@nhai.org
Compliance Officer: Smt. Gunjan Singh;
Tel: +91 11 25074100; E-mail: cs.nhim@nhai.org
Permanent Account Number: AADTN5721E