EPFO joins new NHAI InvIT as strategic investor

Over the next 3 to 5 years, NHAI plans to provide further assets of about 1,500 km to RIIT. For NHIT, the NHAI has accepted a Rs 6220 crore offer from NHIT for acquiring two highway stretches.

Written by Mukesh Jagota

March 3, 2026 22:33 IST

The Employee Provident Fund Organisation (EPFO) will join the public infrastructure investment trust (InvIT) promoted by National Highways Authority of India (NHAI) as a strategic investor, committing funds to acquire 16.6% of the total units on offer in the maiden public issue of Raajmarg Infra Investment Trust (RIIT). According to sources, of the total Rs 6,000 crore that the RIIT is aiming to raise through a public offer of units, the EPFO has committed Rs 1,000 crore. This would enable it to acquire more units or equity than the sponsor NHAI. As a sponsor the NHAI has committed to acquire 15% of units. Another strategic investor for RIIT is SBI Life Insurance Company Ltd, which will acquire 4.3% of the units by investing Rs 260 crore. From March 10, the managers of RIIT will be inviting bids from anchor investors, which are separate from strategic investors. In all, the RIIT will have to raise around Rs 9500 crore to acquire five highway stretches of 260 km length from NHAI. Around Rs 6000 crore will be through equity, the remaining Rs 3500 crore will be through debt. In the last financial year, the EPFO had invested Rs 2035 crore in the fourth round of asset acquisition by private InvIT promoted by NHAI, National Highways Infrastructure Trust (NHIT). The social security institution is looking at InvIT as another avenue for investments of retirement funds of organised sector workers. Around 10% of the units of RIIT could be set aside for retail investors. The price band for each unit has been fixed at Rs 99-100 per unit. The minimum bid size for anchor investors is Rs 14,850 or 150 units. The five stretches that RIIT aims to acquire in the maiden round are spread across four states. The monetized assets include 80.52 km long Gorhar–Barwa Adda section in Jharkhand, 69.4 km long Chilakaluripet–Vijayawada section in Andhra Pradesh, 32.6 km long Chennai Bypass, 33 km long Chennai–Tada section in Tamil Nadu and 44.6 km long Neelmangla– Tumkur section in Karnataka. Over the next 3 to 5 years, NHAI plans to provide further assets of about 1,500 km to RIIT. For NHIT, the NHAI has accepted a Rs 6220 crore offer from NHIT for acquiring two highway stretches. These two transactions will take the funds raised through monetisation of highways through InvIT to Rs 15720 crore. So far this financial year, NHAI has raised Rs 12,357 crore from two rounds of monetisation through the Toll Operate Transfer (ToT) mode. A few more ToT bundles are still open for bidding so some more funds can flow through this route this financial year.

According to sources, of the total Rs 6,000 crore that the RIIT is aiming to raise through a public offer of units, the EPFO has committed Rs 1,000 crore. This would enable it to acquire more units or equity than the sponsor NHAI. As a sponsor the NHAI has committed to acquire 15% of units.

Another strategic investor for RIIT

Another strategic investor for RIIT is SBI Life Insurance Company Ltd, which will acquire 4.3% of the units by investing Rs 260 crore. From March 10, the managers of RIIT will be inviting bids from anchor investors, which are separate from strategic investors.

InvIT as another avenue for investments

In the last financial year, the EPFO had invested Rs 2035 crore in the fourth round of asset acquisition by private InvIT promoted by NHAI, National Highways Infrastructure Trust (NHIT). The social security institution is looking at InvIT as another avenue for investments of retirement funds of organised sector workers.

Around 10% of the units of RIIT could be set aside for retail investors. The price band for each unit has been fixed at Rs 99-100 per unit. The minimum bid size for anchor investors is Rs 14,850 or 150 units. The five stretches that RIIT aims to acquire in the maiden round are spread across four states.