IRB InvIT listing on Thursday

KS Badri Narayanan Chennai | Updated on January 11, 2018 Published on May 17, 2017


Market lot size 5,000; foreign portfolio investors hold 24.56 crore units

Foreign portfolio investors have lapped up 24.53 crore units of IRB InvIT Fund, which will be listed on Thursday. Stock exchanges have fixed the market lot for secondary market trading at 5,000 units.

Minimum lot size: ₹10 lakh

According to the post-issue shareholding pattern available with the exchanges, FPIs now own 42.27 per cent stake in the IRB InvIT Fund. Apart from FPIs, 12.09 crore units (or 20.83 per cent stake) is owned by high net worth individuals.

The IRB InvIT Fund IPO, which came out in a price band of ₹100-102, had received strong response; it was subscribed 8.6 times, despite the minimum lot size of ₹10 lakh. The issue price was fixed at ₹102.

IRB Infrastructure Developers, the sponsor of the InvIT, had raised ₹5,035 crore through the IPO, which include the main offer aggregating ₹4,300 crore, an offer-for-sale by IRB Infrastructure Developers and a greenshoe option of retaining up to ₹435 crore worth of oversubscription.

Gets ₹2,100 cr from anchors

In simple term, InvIT is a pool of money collected from various investors (unit holders) to invest in infrastructure projects and distribute back the cash flows generated from those projects to the unit holders. IRB InvIT Fund raised ₹2,100 crore from anchor investors such as the Government of Singapore, Deutsche Global Infrastructure Fund, Birla Sun Life MF, HDFC Standard Life, ICICI Prudential, DSP BlackRock, US-based Discovery and DWS India, among others.

According to analysts, FPIs pumped money into IRB InvIT as it provides yields higher than the interest rates they would get in bank deposits.

The InvIT will offer 12 per cent yield to mutual funds and 10 per cent to HNIs post taxes.

Among the other category of investors, mutual funds hold 5.40 per cent stake while alternative investment funds (AIFs) and trusts hold 0.43 per cent and 0.61 per cent respectively, in IRB InvIT.

As InvIT is a new financial product, SEBI, in a move to restrict retail participation, has fixed the minimum application size at ₹10 lakh.

Post-listing, these could be traded in lot sizes worth ₹5 lakh or more.

IRB will primarily own, operate and maintain six toll-road assets in Maharashtra, Gujarat, Rajasthan, Karnataka and Tamil Nadu. Currently, these toll-roads are operated and maintained under agreement with the NHAI.

The scrip code is 540526 on the BSE and IRBINVIT on the NSE.

Published on May 17, 2017
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