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India’s primary market may be showing signs of fatigue in early 2026, but a new public issue from the highways sector is set to test investor appetite once again. National Highways Authority of India (NHAI)-backed Raajmarg Infra Investment Trust is preparing to launch an initial public offering (IPO) that could raise as much as ₹6,000 crore ($656 million), positioning it among the largest InvIT offerings in recent months.

The move comes at a time when several newly listed stocks have delivered underwhelming returns, making this offering a key barometer for infrastructure-focused investor confidence.

Credits: HT Auto

The IPO Details: Pricing and Timeline

According to the offer advertisement, Raajmarg Infra Investment Trust has set a price band of ₹99 to ₹100 per unit. The IPO will open for anchor investors on March 10, followed by a public subscription window from March 11 to March 13.

The structure of the offering is designed to attract long-term institutional capital first, before opening the gates to retail and other investors. Anchor participation will be closely watched, as it often signals institutional conviction in large-ticket infrastructure assets.

With a targeted raise of up to ₹6,000 crore, the IPO represents a significant monetisation effort for NHAI and aligns with the government’s broader strategy of recycling operational infrastructure assets to fund future development.

What’s Inside the Portfolio?

At launch, Raajmarg InvIT will hold a portfolio of five toll roads located across Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka. Together, these assets span over 260 kilometres (162 miles).

The portfolio includes operational toll road projects, offering predictable revenue streams derived from toll collections. Such assets are typically considered relatively stable, particularly when traffic flows are supported by economic activity and freight movement across key corridors.

For investors, the appeal lies in the InvIT model itself. Infrastructure Investment Trusts allow developers and government agencies to monetise completed projects while offering investors exposure to long-term, income-generating infrastructure assets. Returns are generally structured through a mix of distributions funded by toll income and capital appreciation potential.

Testing a Softer IPO Market

The timing of the issue is noteworthy.

Indian IPO markets have cooled this year after two record-breaking years of first-time share sales. According to Bloomberg data, shares of companies that went public in India so far this year have seen a weighted-average decline of 0.7% since listing — a modest but telling signal of cautious investor sentiment.

Recent listings have added to that caution. For instance, shares of Clean Max Enviro Energy Solutions Ltd. fell 18% on their first day of trading after a $341 million IPO. Such volatile debuts may prompt investors to scrutinise valuations and cash-flow visibility more closely before committing fresh capital.

Against this backdrop, Raajmarg’s offering will be seen as a litmus test for infrastructure-focused InvITs, especially those backed by government-linked entities.

The Broader Infrastructure Monetisation Push

For NHAI, the IPO is part of a broader asset monetisation strategy. Over the past few years, the authority has increasingly relied on InvIT structures to unlock capital from completed highway projects.

This model allows NHAI to recycle funds into new highway construction, aligning with India’s aggressive infrastructure expansion plans. By transferring operational assets into InvITs, the authority reduces balance sheet pressure while ensuring continued private and institutional participation in the infrastructure ecosystem.

The government’s continued emphasis on logistics efficiency, freight corridors, and inter-state connectivity also strengthens the structural story behind toll-road InvITs.

Who’s Advising the Deal?

The offering is being advised by a consortium of leading financial institutions, including SBI Capital Markets Ltd., Axis Bank Ltd., ICICI Securities Ltd.and Motilal Oswal Investment Advisors Ltd..

The presence of established bankers suggests confidence in the transaction’s structure and potential demand base, particularly among institutional investors seeking stable yield-oriented instruments.

Credits: Swarajya

A Crucial Moment for InvITs

Raajmarg Infra Investment Trust’s IPO comes at a pivotal time. With equity markets showing signs of selectivity and investors turning more valuation-conscious, offerings backed by tangible assets and predictable cash flows may hold a relative advantage.

However, pricing discipline and traffic growth assumptions will be key to sustaining post-listing performance. A strong subscription response could revive momentum in India’s infrastructure-focused capital markets, while a weak debut might reinforce the cautious tone currently prevailing in the IPO landscape.

Either way, this ₹6,000 crore offering is more than just another listing — it is a test of whether India’s infrastructure story can continue to attract capital even in a more measured market environment.