The country’s first Infrastructure Investment Trust (InvIT) will hit the ground on Wednesday as the three-day public issue of IRB InvIT Fund, sponsored by IRB Infrastructure Developers (IRB ID), opens for subscription.
The company plans to raise ₹4,650 crore through the IPO in a price band of ₹100-102 a unit.
The issue consists of a fresh issue of shares aggregating to ₹4,300 crore and an offer-for-sale of up to 3.476 crore units by IRB ID, Modern Road Makers, Aryan Toll Road, ATR Infrastructure and Ideal Road Builders. The issue has an option to retain over-subscription of up to 25 per cent of the issue size. The bid can be made for a minimum of 10,000 units and in multiples of 5,000 units thereafter. The units will be listed on the BSE and the NSE.
The IRB InvIT Trust will have six completed road assets covering 3,000 km spread across five States and an average balance concession period of 16 years. The Trust will have 100 per cent ownership of all six road assets.
The issue is being made through the book-building process and in compliance with the InvIT regulations, wherein not more than 75 per cent of the issue will be available for allocation on proportionate basis to institutional bidders, IRB said.
In 2014, the regulator had issued infrastructure investment trust norms, allowing companies to raise funds in infrastructure projects through a Trust.
Companies such as MEP Infrastructure Developers, Sterlite Power and IL&FS Investment Managers Ltd also plan to launch InvITs soon.
Gets ₹2,094 cr from anchorsIRB InvIT Fund has raised ₹2,094.5 crore by allotting 20.53 crore units to 28 anchor investors at ₹102 a unit. The anchor investors include Government of Singapore, Platinum International Fund, BNP Paribas, Birla Sun Life Mutual Fund, Schroder Asian Asset Income Fund, Deutsche Global Infrastructure Fund, DWS RREEF, HDFC Standard Life Insurance Company, Forefront Alternative Investment, Standard Life Investment Company and Jupiter South Asia Investment Company.