The Initial public offering (IPO) of India’s first infrastructure investment trust (InvIT) by IRB Infrastructure Developers Ltd to raise Rs 4,300 crore through fresh issue, will be at a price band of Rs 100-102 per unit. The issue also has an offer for sale of up to 3.47 crore units.
Overall, the trust will be raising around Rs 5,035 crore as part of this first public offering which includes fresh issue of Rs 4,300 crore, offer for sale and over subscription.The issue will open on May 3 and close on May 5, said a statement issued by the engineering firm.
The IRB InvIT trust has six operational road assets to begin with covering 3,000-lane km spread across five states.The proceeds from the IPO will be utilised mostly to repay the debt of its special purpose vehicles (SPVs) created for the toll-road projects. Infrastructure investment trusts are institutions similar to mutual funds that pool investment from various category of investors and invest them into completed and revenue generating infrastructure projects and thereby creating return for the investor. The capital market regulator notified the Sebi (Infrastructure Investment Trusts) Regulations, 2014 on September 26, 2014, and these trusts are likely to help facilitate investment in the infrastructure sector.
InvITs can act as investment…