ICRA also hopes that the Ministry of Road Transport and Highways (MoRTH) can achieve up to 71 per cent of the monetization target of Rs. Rs 1.6 lakh crore under the National Monetization Pipeline by the end of FY 2025.
In April 2024, the National Highways Authority of India (NHAI) released an indicative list of 33 road assets that it plans to monetize in FY2025 through a mix of toll-operate-transfer (TOT) and Infrastructure Investment Trusts.
These properties are spread across 12 states, totaling approximately Rs 2,750 thousand and annual toll collection amounting to Rs. 4,931 crores.
ICRA vice-chairman Ashish Modani said: “In the last six years, NHAI has monetized 29 assets in 10 ToT bundles with valuation multiples between 0.44x to 0.93x, generating Rs 42,334 crore so far. According to ICRA's assessment, considering the 20-year concession period and annual toll collection, the 3 identified properties could be worth between Rs 53,000 - 60,000 crore, given the debt-to-equity funding ratio seen in previous transactions. happened, it could turn into a.Opportunity for banks to lend Rs 38,000-43,000 crore to the capital market.
NHAI intends to bundle 33 identified assets into large (above Rs 6,00 crore), medium (around Rs 3,000- 4,000 crore) and small bundles (Rs 1,000-3,00 crore) for different types of investors. .
“The structure of the bundles will continue to be a determining factor for th valuation multiplier as the presence of road segments constructed under annuity mode/hybrid annuity mode (HAM 4) will reduce the need for operation and maintenance expenditure (for the new concessionaire) and Therefore, it will take a relatively higher multiple,” Modani said.
Under the National Monetization Pipeline, monetization of the road sector was expected to be Rs 1.6 lakh crore. 27 per cent of total monetization during FY2022-FY2025.By the end of FY2024, NHAI (along with MoRTH) had received around Rs 0.53 lakh crore (~33 per cent) from both modes for monetizing its assets.
In April 2024, the National Highways Authority of India (NHAI) released an indicative list of 33 road assets that it plans to monetize in FY2025 through a mix of toll-operate-transfer (TOT) and Infrastructure Investment Trusts.
These properties are spread across 12 states, totaling approximately Rs 2,750 thousand and annual toll collection amounting to Rs. 4,931 crores.
ICRA vice-chairman Ashish Modani said: “In the last six years, NHAI has monetized 29 assets in 10 ToT bundles with valuation multiples between 0.44x to 0.93x, generating Rs 42,334 crore so far. According to ICRA's assessment, considering the 20-year concession period and annual toll collection, the 3 identified properties could be worth between Rs 53,000 - 60,000 crore, given the debt-to-equity funding ratio seen in previous transactions. happened, it could turn into a.Opportunity for banks to lend Rs 38,000-43,000 crore to the capital market.
NHAI intends to bundle 33 identified assets into large (above Rs 6,00 crore), medium (around Rs 3,000- 4,000 crore) and small bundles (Rs 1,000-3,00 crore) for different types of investors. .
“The structure of the bundles will continue to be a determining factor for th valuation multiplier as the presence of road segments constructed under annuity mode/hybrid annuity mode (HAM 4) will reduce the need for operation and maintenance expenditure (for the new concessionaire) and Therefore, it will take a relatively higher multiple,” Modani said.
Under the National Monetization Pipeline, monetization of the road sector was expected to be Rs 1.6 lakh crore. 27 per cent of total monetization during FY2022-FY2025.By the end of FY2024, NHAI (along with MoRTH) had received around Rs 0.53 lakh crore (~33 per cent) from both modes for monetizing its assets.
