Mumbai-based Alpha Alternatives, whose roads infrastructure trust IPO opened for subscription yesterday, plans to widen its target areas.

Anantam Highways Trust will consider buying toll roads rather than focusing solely on hybrid annuity model projects, said CEO Jignesh Shah, who is also head of infrastructure at Alpha Alternatives. He did not say whether any targets have been identified yet.

Anantam is open to having a portfolio comprising of projects that offer a fixed annuity, as well as concessions with the potential to provide an upside from increased traffic, said Shah. Moody’s affiliate ICRA estimates that toll collections for Indian national highways will grow between 8% and 9% in the current fiscal year through March 2026, compared with 5%-8% in the previous 12 months.

The trust’s INR 4bn (USD 47m) IPO will conclude on 9 October. At the end of the first day yesterday, it had received bids for just over 40% of the 22 million units on offer, collecting INR 1.8bn from anchor investors. The price range is INR 98 to INR 100 per unit. Alpha’s ownership will decline to 37.5% from 46%, while partner Dilip Buildcon’s holding will be diluted to 44% from 54%.

The capital raised will be used to provide loans to project companies to repay debt, and for general purposes. Dilip Buildcon will initially transfer seven hybrid annuity projects to the trust, followed by 11 at a later date, Shah said. The trust will have the right of first refusal on all projects that Dilip Buildcon constructs and aims to sell. The builder is in the midst of constructing another nine hybrid annuity projects with a bid cost totaling INR 101bn, according to the company’s latest investor presentation.

Anantam’s acquisition pipeline also includes four highway assets in the hybrid model that it will buy from Alpha Alternatives and funds that it manages. Anantam also has the right of first refusal on assets acquired by Alpha Alternatives and its Build India Infrastructure Fund.

“Between Dilip Buildcon and the Build India Infrastructure Fund, Anantam has enough firepower and opportunity to acquire assets,” said Naresh Kothari, founder and managing partner, Alpha Alternatives.