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IRB InvIT Fund, an investment trust sponsored by IRB Infrastructure Developers, has received markets regulator SEBI’s approval to raise Rs 4,300 crore through initial public offering.
However, the Securities and Exchange Board of India has asked for clarification from India Grid Trust and Reliance Infra InvIT Fund regarding their proposed IPOs.
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.
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, Aryan Toll Road, ATR Infrastructure and Ideal Road Builders.
The Mumbai-based toll road developer is the sponsor of IRB InvIT Fund (trust), an infrastructure investment trust registered with the Sebi, while IRB Infrastructure Pvt Ltd is the investment manager to the trust.
The investment manager in consultation with the global coordinators and book running lead managers to the issue, reserves the option to retain over subscription of up to 25 per cent 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, and Reliance Infra InvIT Fund, sponsored by Reliance Infrastructure, regarding their proposed IPOs of Rs 2,650 crore and Rs 3,000 crore respectively.
Without disclosing details of the clarifications sought, SEBI has said ‘clarifications’ are awaited for the proposed public issues.
SEBI 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.
Apart from these, other infrastructure investment 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 — an investment vehicle that would enable promoters to monetise completed assets — to help infra developers mop up funds for long-term projects in a more transparent manner.
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