Citius TransNet InvIT
IPO Size: Rs. 1,105 cr, entirely Fresh Issue
- Rs. 1,000 cr for acquisition of 5 SPVs
Allocation: Maximum 75% for institutions, minimum 25% for HNI, no retail quota
Price band: Rs. 99-100 per unit (not share)
Mcap: Rs. 6,100 cr, Enterprise Value: Rs. 10,347 cr
IPO Date: Fri 17th Apr 2026 to Tue 21st Apr 2026, Listing Wed 29th Apr 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
10 Road Assets
Citius TransNet Investment Trust (Citius InvIT) is acquiring a portfolio of 10 road assets (7 toll and 3 annuity projects) comprising 3,407 lane kms, across 8 states in India. It also holds Right of First Offer (ROFO) on 11 hybrid annuity model (HAM) road assets of sponsor Epic Transnet, part of EAAA / Edelweiss Group.
Discount to NAV
NAV stood at Rs. 105 per unit, as of 31Dec25. So, the IPO in undertaken at 5% discount to NAV. Even the Enterprise value of Rs. 10,494 cr as per Valuer Report implies 1.5% discount to EV.
Yield
Projected cash flows to increase till FY28E, but drop in FY29E. This may be made up through inorganic acquisitions of 11 HAM assets. Net Distributable Cash Flow (NCDF) and break-up between interest, dividend (both taxable in investor’s hand at marginal rate) and capital repayment (tax free till Rs. 100) is not disclosed, making post-tax yield computation difficult.
InvIT: Past Performance and Outlook
InvIT yields are generally higher than REITs are infra assets lack capital appreciation unlike real estate and have fixed tenure, in some cases. But unlike REITs, many of the past InvITs have not rewarded shareholders, despite higher yields, such as Capital Infra Trust (sponsored by Gawar Constriction), Anantam Highways, L&T’s Interise Trust and IRB InvIT, although NHAI-backed Raajmarg InvIT did well.
InvITs prices move inversely with interest rates and domestic interest rate cut cycle is now behind us. We may see rate hike, if at all, depending on global factors impacting domestic growth and inflation. Thus, not much scope for capital appreciation and differential between InvIT yield and risk-free interest rate narrows, making them unattractive. Most of the privately sponsored road InvIT’s are presently ruling at post-tax yields of about 9%, which are lower than Nifty’s long-term average of 13%.
