The initial public offer of IRB Infrastructure Developers Ltd.’s infrastructure investment fund (InvIT) was subscribed 8.57 times at close on Friday, the last day of the issue.
The maiden offer, the first by an InvIT in India, received bids for 215 crore shares against the total issue size of 25.09 crore shares, a company statement said.
IRB InvIT Fund had on Tuesday raised around Rs 2,100 crore from anchor investors. The IPO had a price band of Rs 100-102.
InvITs are mutual fund-like investment trusts that pool in infrastructure projects to raise money from investors. Listing enables promoters to monetise completed assets and raise funds for other long-term projects.
The IRB InvIT fund comprises fresh issue 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 has six operational road assets and the proceeds from the IPO will be used mostly to repay the debt of its special purpose vehicles (SPVs) created for the toll-road projects. As per InvIT norms, the sponsor, in this case IRB, will hold 15 percent units for the initial three years.
IDFC Bank, Credit Suisse Securities and ICICI Securities are the lead managers.
The units will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
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