IRB InvIT Fund Raises Rs 2,094 Crore From Anchor Investors Ahead Of IPO
The initial public offering which opens on Wednesday.
IRB InvIT Fund, the country's first infrastructure investment trust (InvIT) fund, has raised Rs 2,094 crore from anchor investors ahead of its initial public offering which opens on Wednesday.
The investment trust, promoted by IRB Infrastructure Developers Ltd., allocated 20.5 crore shares at Rs 102 per unit, according to a stock exchange filing. The company plans to raise up to Rs 5,000 crore by listing the InvIT.
InvITs are mutual-fund like instruments that pool in infrastructure projects to raise funds from investors.
The Government of Singapore, with just over 20 percent of the anchor investor allotment, was the biggest investor. Other anchor investors included Birla Sunlife Trustee Company Private Ltd., BNP Paribas Arbitrage, Monetary Authority of Singapore, Birla Sun Life Insurance Company Ltd. and HDFC Standard Life Insurance Company Ltd. Five mutual funds featured on this list as well.
The Securities and Exchange Board of India (SEBI) had in January allowed mutual funds to invest in InvITs. Other infrastructure companies, including Sterlite Power Grid Ventures Ltd., Reliance Infrastructure Ltd. and MEP Infrastructure Developers Ltd., have also filed offer documents to list their InvITs.
IRB Infrastructure has set a price band of Rs 100-102 per unit for the offer. While the larger chunk of the issue will be in fresh equity, existing promoters will also offload some of their shareholding through an offer for sale.
The company plans to use the proceeds on six of its toll road assets in Maharashtra, Gujarat, Rajasthan, Karnataka and Tamil Nadu, all housed under the InvIT and operational. They collectively earned Rs 1,003.8 crore in financial year 2015-16, according to the draft prospectus.
