Anantam Highways InvIT IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

Anantam Highways Trust (“the Trust”) is a SEBI-registered Infrastructure Investment Trust (InvIT) established by Alpha Alternatives Fund Advisors LLP on July 24, 2024, and registered on August 19, 2024 under the SEBI (Infrastructure Investment Trust) Regulations, 2014. The Trust is focused on investing in road infrastructure assets across India, primarily operating under the Hybrid Annuity Model (HAM) framework of the National Highways Authority of India (NHAI).

The Trust proposes to acquire 100% equity interest in seven project SPVs—Dodaballapur Hoskote Highways Ltd, Repallewada Highways Ltd, Dhrol Bhadra Highways Ltd, Narenpur Purnea Highways Ltd, Viluppuram Highways Ltd, Bangalore Malur Highways Ltd, and Malur Bangarpet Highways Ltd. These projects collectively cover more than 230 km of national and state highways, all of which are operational and generating steady annuity-based income from NHAI.

Each project operates on a long-term concession model with NHAI, where revenue is derived from biannual annuity payments and interest on reducing completion cost, providing predictable and inflation-linked cash flows. Operations and maintenance (O&M) services for all projects are managed by Dilip Buildcon Limited (DBL)—a reputed EPC and infrastructure development company with a strong execution record. The Trust also benefits from a Right of First Offer (ROFO) to acquire additional projects from DBL, Alpha Alternatives affiliates, and Terrefert Green Growth LLP, ensuring a visible growth pipeline.

IPO Details:

Objectives of Issue:

• Providing loans to the Project SPVs for repayment or pre-payment of debt, in part of in full, including any accrued interest, of their respective outstanding borrowings
• Meeting general corporate purposes

Key Strengths:

• Well-Diversified Portfolio of Operational Road Assets: Anantam Highways Trust owns seven operational HAM road projects spread across multiple states including Karnataka, Tamil Nadu, Gujarat, Bihar, and Telangana. This geographical diversification reduces exposure to region-specific risks such as political instability, local regulatory changes, and climatic disruptions. Each project operates under separate concession agreements with NHAI, minimizing correlation risk among cash flows. Additionally, all assets have achieved the Commercial Operations Date (COD) and are generating steady annuities. The diversity in location, traffic pattern, and concession tenure provides resilience against revenue shocks and enhances the predictability of long-term distributions to unitholders — a key differentiator in comparison to InvITs that have concentrated exposure to a single corridor or geography.
• Stable Cash Flows through HAM Model: All the Trust’s assets operate under the HAM structure, where NHAI guarantees 40% project cost and pays fixed biannual annuities with interest linked to benchmark rates. This model ensures predictable returns, limited traffic risk, and a natural hedge against inflation and interest rate volatility—offering sustainable and steady income visibility for unitholders.
• Strategic Partnership with Dilip Buildcon Limited: The Trust benefits from DBL’s extensive execution expertise and operational excellence. DBL, with experience across roads, bridges, tunnels, and railways, serves as the O&M contractor for all projects. Its involvement ensures efficient operations, timely maintenance, and strong governance, enhancing the longevity and performance of the assets.

Risks

• Limited Flexibility in Asset Diversification- As per InvIT regulations, at least 80% of the portfolio must remain invested in completed and revenue-generating assets, restricting flexibility for the Investment Manager to diversify into new greenfield or non-road infrastructure segments. While the ROFO agreements with DBL and affiliates offer a future pipeline, the growth trajectory remains constrained by regulatory caps and availability of suitable assets. In addition, InvITs are bound to distribute 90% of their net distributable cash flows, leaving limited room for reinvestment or liquidity buildup. This can moderate long-term growth and limit the Trust’s ability to respond dynamically to emerging opportunities in other infrastructure verticals.
• Concentration Risk in Asset Type and Revenue Source- All assets under the Trust are road projects structured under HAM, meaning revenue streams are solely dependent on government annuities. This lack of diversification across infrastructure types (like transmission lines, airports, or logistics parks) and absence of market-linked revenue (like toll collections) limits flexibility. In the event of any policy modification in NHAI’s HAM framework or delays in annuity disbursement cycles, the Trust’s entire income base could be affected simultaneously. Over time, diversification through additional ROFO acquisitions or new asset classes will be key to reducing concentration-driven operational vulnerability.

Financial Snapshot