Reliance Retail Ventures Ltd., the retail arm of Reliance Industries Ltd., is planning to raise Rs 3,048 crore through the infrastructure investment trust of its warehousing and logistics assets on a private placement basis, as per draft documents filed with the Securities and Exchange Board of India.
With an intend to monetise its warehouse assets, the Mukesh Ambani-led conglomerate has set up the Infrastructure Investment Trust under the name of Intelligent Supply Chain Infrastructure Trust.
Upon the allotment of the units, the trust intends to utilise the issue proceeds towards the acquisition of equity shares of the warehouse special purpose vehicle and provide a loan of Rs 2,928 crore to the SPV towards acquisition of the logistics assets.
Reliance Retail is the sponsor of the InvIT and Axis Trustee Services Ltd. is the trustee. Infinite India Investment Management Ltd. has been appointed as the Investment Manager, and Jio Infrastructure Management Services Ltd. has been appointed as the Project Manager to the Trust.
The Trust shall acquire 100% of the equity share capital of the Warehouse SPV on the closure of the issue and immediately prior to the allotment of units.
Upon completion of the issue, minimum 25% of the units of the InvIT on a post-issue basis will be held by Reliance Retail Ventures.
The portfolio of assets will comprise of 64 warehousing facilities. Each of these have a minimum area of 1 lakh square feet and an investment of more than Rs 25 crore.
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