IRB InvIT Gets SEBI Nod For Rs 4,300-Crore IPO
IRB InvIT Fund had filed its draft papers in September 2016.
IRB InvIT Fund, an investment trust sponsored by IRB Infrastructure Developers Ltd., has received market regulator Securities and Exchange Board of India’s (SEBI) approval to raise Rs 4,300 crore through an initial public offering (IPO).
The regulator has, however, sought clarifications from India Grid Trust and Reliance Infra InvIT Fund regarding their proposed IPOs.
InvITs, or infrastructure investment trusts, are mutual fund-like institutions that pool in money from individual investors for investing in infrastructure.
IRB InvIT Fund had filed its draft papers in September 2016 and got ‘observation’ from Sebi on February 9, which is necessary for any entity to launch public offer.
Also Read: InvITs Galore! Should Investors Be Excited By Infrastructure Investment Trusts?
According to draft papers, IRB InvIT’s IPO comprises fresh issue of units worth up to Rs 4,300 crore by the trust and an offer for sale of units by IRB Infrastructure Developers and its subsidiaries -- Modern Road Makers Ltd., Aryan Toll Road Pvt Ltd., ATR Infrastructure Pvt Ltd. and Ideal Road Builders Pvt Ltd.
The Mumbai-based toll road developer is the sponsor of IRB InvIT Fund, the trust registered with SEBI, while IRB Infrastructure Pvt Ltd. is the investment manager to the trust.
The investment manager, in consultation with global coordinators and book running lead managers to the issue, reserves the option to retain over subscription of up to 25 percent of the issue size in accordance with the InvIT norms.
The regulator has sought clarification from India Grid Trust, sponsored by Sterlite Power Grid Ventures Ltd., and Reliance Infra InvIT Fund, sponsored by Reliance Infrastructure Ltd., regarding their proposed IPOs of Rs 2,650 crore and Rs 3,000 crore, respectively.
SEBI did not disclose the “clarifications” sought. The regulator had received last communication about the proposed public issues of India Grid Trust and Reliance Infrastructure InvIT Fund on February 13 and February 15, respectively.
Other such trusts registered with SEBI are GMR Infrastructure Investment Trust, MEP Infrastructure Investment Trust and IL&FS Transportation Investment Trust.
SEBI had in August 2014 introduced InvITs -- that would enable promoters to monetise completed assets -- to help infra developers mop up funds for long-term projects in a more transparent manner.
