Raajmarg Infra Investment Trust (RIIT) is contemplating a follow-on public offer (FPO) to raise additional capital for asset acquisitions, months after its ₹6,000 crore initial public offering, according to sources familiar with the matter. The trust, which is government-backed, is exploring this option to broaden its base of unit holders and secure funding for toll road projects.
Key Details
Currently, RIIT is leaning towards an FPO rather than a qualified institutional placement (QIP) to attract more retail investors. One source noted,
A follow-on public offer gives individuals a route to receive yield from infrastructure assets.
An adviser is working with the trust to identify suitable assets for purchase, with the valuation determining the total capital to be raised.
As of March 2026, RIIT reported net assets worth ₹6,043 crore. The trust has a Right of First Offer (ROFO) agreement with its sponsor, the National Highways Authority of India, which allows it to acquire certain projects. Discussions regarding the share issuance are ongoing, and the timeline may shift based on market conditions and asset identification, as cautioned by sources.
Background
Infrastructure investment trusts like RIIT function similarly to mutual funds, pooling capital from investors to acquire revenue-generating infrastructure. This structure was introduced in India in 2014 to help developers monetize projects and reduce debt. Investors interested in infrastructure assets may find opportunities in RIIT's upcoming share sale, as the government aims to increase participation in this asset class.
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The potential share sale could influence the infrastructure sector, particularly in toll road financing, as it may attract more retail investors seeking yield. A successful FPO could bolster RIIT's capital position and enhance its acquisition capabilities.
Investors will watch for further details on the asset identification process and the timeline for the proposed follow-on public offer, which could provide insights into RIIT's growth strategy.