### **Overview** Capital Infra Trust is a SEBI-registered Infrastructure Investment Trust (InvIT) established in 2023, focused on acquiring, owning, and managing operational road infrastructure assets in India. Sponsored by **Gawar Construction Limited (GCL)**—a leading Indian EPC contractor with over 25 years of experience—the trust offers investors a stable, low-risk, yield-generating investment vehicle through annuity-backed road projects. As of November 2025, the trust manages a portfolio of **9 fully operational Hybrid Annuity Model (HAM)** road projects, totaling approximately **683 kilometers** (over **2,100 lane-kilometers**) across **7 Indian states**: Rajasthan, Himachal Pradesh, Haryana, Madhya Pradesh, Karnataka, Bihar, and Chhattisgarh. --- ### **Key Highlights** #### **Portfolio & Operations** - **Total AUM**: Approximately **₹4,912 crore** at inception (Jan 2025), with targeted growth to **₹10,000 crore by FY27** and **~$5 billion (~₹41,000 crore) by 2030**. - **Project Structure**: All assets operate under **long-term DBOT (Design, Build, Operate, Transfer)** concession agreements with the **National Highways Authority of India (NHAI)**, a sovereign counterparty. - **Revenue Model**: **Annuity-linked cash flows** from NHAI, insulated from traffic volume risks and inflation-linked escalations. Annuity receipts are pre-determined and escrow-secured. - **Residual Life**: Average weighted residual concession period of **11.1–11.3 years**, offering long-term cash flow visibility. - **Annuity Receipts**: Trust has received **67 out of 270 contracted annuities** to date; total annuities received amount to **₹523 crore** (in line with projections). #### **Credit Profile & Ratings** - **AAA/Stable** credit ratings from **CRISIL** and **CARE**, reflecting strong creditworthiness and robust risk management. - **Capital Structure**: Net debt-to-asset value ratio of **44%**, with a disciplined leverage policy. - **Cost of Debt**: Average of **7.68%**, underpinned by fixed-cost financing structures. - **WACC**: Ranges between **6.96% – 7.14%**, supporting efficient capital allocation. --- ### **Strategic Growth & Pipeline** #### **Near-Term Expansion** - **Planned Acquisitions (FY26)**: - **Jodhpur Ring Road** (Rajasthan): 2-lane, operational. - **Hasanpur–Bakhtiyarpur** (Bihar): 188.9 lane-km, 4-lane, NH20. - **Champa–Korba** (Chhattisgarh): Strategic HAM asset. - These acquisitions will add **164 km** of highways and increase AUM from ₹4,282 crore to **~₹6,800 crore**, acquired at a **9% discount to enterprise value (₹2,590 crore)**. #### **Future Pipeline** - **ROFO (Right of First Offer) Pipeline**: **17 operational HAM assets** from sponsor Gawar Construction, providing a structured, value-accretive growth path. - **Third-Party Acquisition Strategy**: Active pursuit of additional income-generating assets from other developers capitalizing on India's asset monetization trend. --- ### **Structural Advantages** #### **Governance & Risk Mitigation** - **Project Management Agreement (PMA)**: - Fixed-term contracts with performance incentives. - Protects the InvIT from cost escalations; sponsor cannot terminate within first 5 years. - **ROFO Mechanism**: - 10-year term (5+5), ensuring first-right access to sponsor’s pipeline. - Sponsor cannot sell ROFO assets below Investment Manager’s counteroffer, ensuring **value protection for unitholders**. - **Sponsor Strength**: - **Gawar Construction Limited**: Class I contractor; AA/Stable CRISIL & CARE rated; no NHAI litigation; order book > ₹16,000 crore. - Executed **17+ HAM projects**, with early completion bonuses on multiple projects. #### **Operational Excellence** - Focus on preventive and corrective O&M, ensuring asset quality and lifecycle cost control. - Efficient operating cycle (~3 months), including receivables, outperforming sector peers. - Geographically diversified portfolio reduces regional concentration risk. --- ### **Market Position & Valuation** #### **Sector Positioning** - India’s infrastructure sector is witnessing **increased asset recycling**, with developers monetizing completed HAM projects to fund new bids. - Capital Infra Trust is strategically positioned as a preferred **acquisition platform** for high-quality, revenue-generating road assets. #### **Peer Comparison** - Comparable to **PowerGrid InvIT (PG InvIT)** in structural design: both are SEBI InvITs with long-term contracted revenues, asset-heavy models, and yield-focused investor returns. - Valuation supported by standard methodologies like **Discounted Cash Flow (DCF)** due to predictable annuity streams. --- ### **Key Projects in Portfolio (Selected Examples)** | Project | Location | Length (km) | Bid Cost (₹ Crore) | Status | Residual Life | |--------|--------|-------------|------------------|--------|---------------| | GKBHPL (NH-911) | Rajasthan | 424.21 lane-km | ₹895 | COD 2021 | ~13 years | | Dewas–Ujjain (NH-148) | MP | 165.68 lane-km | ₹716 | COD Jan 2024 | ~14 years | | Bengaluru–BRT Tiger Reserve (NH-209) | Karnataka | 382.52 lane-km | ₹1,008 | PCOD Dec 2020 | ~11 years | | Hasanpur–Bakhtiyarpur (NH-20) | Bihar | 188.9 lane-km | ₹1,044 | Partial COD Apr 2023 | ~13 years | | Rohna–Jhajjar (NH-334B) | Haryana | 141.80 lane-km | ₹718 | COD Jul 2020 | ~11 years | All projects have **15-year concession terms** with **30 annuity payments** under NHAI’s HAM framework.