General view of Infrastructure in India (Photographer: Prashanth Vishwanathan/Bloomberg) 

SEBI Approves Reliance Infrastructure InvIT’s IPO

Reliance Infrastructure InvIT Fund has become the third infrastructure investment trust to get approval for an initial public offering from the market regulator.

InvITs are mutual fund-like instruments holding stake in infrastructure projects, in this case promoted by the Anil Ambani-led Reliance Infrastructure Ltd. The InvIT is looking to raise Rs 2,500 crore, according to its draft red herring prospectus (DRHP). The IPO proceeds will be used to repay part of Reliance Infrastructure's Rs 21,600-crore debt.

The InvIT has seven operational toll projects – five located in Tamil Nadu and one each in Haryana and Rajasthan. Axis Capital, BofA Merill Lynch, UBS, SBI Capital Markets and Yes Securities are the lead managers for the issue, according to the DRHP.

IRB Infrastructure Developers Ltd. and Sterlite Power’s InvITs have already raised Rs 6,550 crore collectively from the primary market. MEP Infrastructure Ltd. and GMR Infrastructure Ltd. are two other sponsors who have sought permission to list their investment trusts.