IRB InvIT Fund's initial public offer (IPO) was subscribed 62 percent as of 5 pm on the second day of the issue. The portion reserved for qualified institutional buyers (QIB) was subscribed 49 percent and The non-institutional investor (NII) segment was subscribed 77 percent. IRB InvIT Fund raised around Rs 2,100 crore from anchor investors ahead of the issue.
The IPO, the first from the InvIT space, will close on May 5. The price band of the issue has been fixed at Rs 100-102. InvITs or infrastructure investment trusts are those debt instruments that will be traded in the market and can act as investment vehicles for sponsors. The listing of these instruments will enable promoters to monetise completed assets and raise funds for other long-term projects.
IRB's InvIT fund comprises fresh issuance of units aggregating Rs 4,300 crore and an offer-for-sale of nearly 3.48 crore units by IRB Infra Developers and its arms - Modern Road Makers, Aryan Toll Road, ATR Infra and Ideal Road Builders. The InvIT trust has six operational road assets and the proceeds from the IPO will be utilised mostly to repay the debt of its special purpose vehicles (SPVs) created for the toll-road projects.
As per InvIT regulation, the sponsor will hold 15 percent units for initial three years. IDFC Bank, Credit Suisse Securities and ICICI Securities are the lead managers to the issue while Karvy Computershare is the register to the issue. The units are proposed to be listed on the BSE and the National Stock Exchange (NSE).
Also Read: What IRB Infrastructure's InvIT IPO Offers Investors
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