IRB InvIT Lists At Its Issue Price Of Rs 102
IRB Infrastructure is India’s first InvIT to list on the exchanges.
Road builder IRB Infrastructure Developers Ltd.’s infrastructure investment trust (InvIT) listed at its issue price of Rs 102 on the National Stock Exchange. Shares listed at a premium of 1.2 percent at Rs 103.25 on the Bombay Stock Exchange.
The company managed to raise around Rs 5,040 crore via the country’s first InvIT to list on the exchanges. InvITs are mutual-fund like instruments that pool in infrastructure projects to raise funds from investors. Other infrastructure companies, including Sterlite Power Grid Ventures Ltd., Reliance Infrastructure Ltd. and MEP Infrastructure Developers Ltd., have also filed for listing their InvITs.
The initial public offering (IPO) had been subscribed nearly 8.57 times. Qualified Institutional Buyers (QIB) had subscribed the most, placing 10.81 times the shares on offer. Demand from high net-worth individuals (HNIs) was subscribed by 5.89 times. The IPO received bids for 2.1 billion units versus the 251 million offered, showed the information uploaded on the NSE website.
Most of the IPO proceeds will be used to pare debt on the books of the special purpose vehicles (SPVs) created to house the toll road projects.
The InvIT has six operational road assets and an estimated cash flow of Rs 587.3 crore in the current financial year. 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.