Capital Infra Trus has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Capital Infra Trust (an InvIT, managed by Gawar Investment Manager) submitted a Security Cover Certificate to NSE and BSE for the period ended September 30, 2025, certified by auditor Walker Chandiok & Co LLP. The certificate covers two series of secured non-convertible debentures (NCDs) totalling roughly ₹23,630 million (Series I of ₹12,000 million and Series II of ₹11,630 million), and reports a security cover ratio of 1.60 times on both book and market values. Importantly, the Trust's Consolidated Net Debt to Enterprise Value ratio stood at 52.50% (Net Debt of ₹21,149 million vs. Enterprise Value of ₹40,284 million), which breaches the 49% ceiling required under SEBI InvIT Regulations. The auditor flagged this as an Emphasis of Matter, noting the Trust first breached the threshold on June 30, 2025, informed the Trustee on July 1, 2025, and is working to restore compliance within the allowed six-month window.
While the security cover for NCD holders remains adequate at 1.60x, the breach of the regulatory 49% leverage cap is a negative signal for unit holders and may weigh on the units. However, the Trust has already raised ₹3,450 million via a preferential issue to the sponsor to prepay debt, suggesting management is actively working to bring leverage back within limits within the six-month grace period.