Anantam Highways InvIT IPO: GMP flat ahead of Friday debut despite decent subscription

Anantam Highways Trust, India’s latest infrastructure investment trust (InvIT), will list on Friday but the grey market is showing no excitement. The units are trading at a grey market premium (GMP) of 0%, suggesting that Anantam Highways InvIT may list around its issue price of Rs 100 per unit.

The Rs 400 crore issue, entirely a fresh offer, received strong demand during its three-day bidding window. The InvIT was subscribed 5.62 times overall, with robust participation from non-institutional investors, who bid 8.93 times their allotted portion. The QIB category saw 2.86 times subscription, reflecting institutional confidence in the trust’s long-term yield potential and stable project base.

Anantam Highways Trust, sponsored by Alpha Alternatives Fund Advisors LLP, focuses on investing in revenue-generating road projects across India. The trust’s portfolio currently consists of seven highway projects spanning 271.65 km across five states and one union territory. These include Dhrol Bhadra, Dodaballapur Hoskote, Repallewada, Viluppuram, Narenpur Purnea, Bangalore Malur, and Malur Bangarpet Highways — all operational assets providing toll or annuity income streams.

The trust’s financial performance has improved sharply. Though total income dropped from Rs 2,527 crore in FY24 to Rs 942 crore in FY25 due to one-off adjustments, profit after tax surged to Rs 410 crore from a loss of Rs 160 crore the previous year, marking a turnaround driven by lower finance costs and improved traffic revenues.

Proceeds from the IPO will largely be used to provide loans to project-level SPVs for debt repayment and prepayment, accounting for Rs 376 crore, while the rest will go toward general trust purposes.

Despite the strong response from investors, analysts say the lack of a grey market premium reflects the nature of InvITs, which are typically yield-based investments rather than speculative listings. Such instruments usually attract long-term investors seeking steady cash flows from infrastructure assets instead of quick listing gains.Anantam Highways InvIT is backed by Dilip Buildcon as the project manager, with Alpha Alternatives as the sponsor. The InvIT will be managed by an experienced team with expertise in infrastructure operations and financing.

The post-listing performance is likely to depend on yield distribution timelines and quarterly financial disclosures. The trust’s predictable cash flows and road sector exposure could appeal to long-term investors seeking stable returns.