IRB InvIT Fund’s Rs 4,300cr IPO to open on May 3
Mumbai-based toll road developer IRB Infrastructure Developers will come out with India’s first initial public offering (IPO) by an infrastructure investment trust, or InvIT, on May 3.
Announcing this, IRB Infrastructure Developers said on Tuesday it has set a price band of Rs 100 to Rs 102 per unit in the IPO of IRB InvIT Fund.
IRB InvIT Fund, the first such fund to be launched after Sebi issued the guidelines for InvIT,. aims to raise Rs 4,300 crore through issue of fresh units and offer for sale of over 34.76 crore units by six road projects being undertaken by IRB Infrastructure Developers.
The minimum application size for the bidders is Rs 10 lakh as bids can be made for a minimum of 10,000 units and in multiples of 5,000 units. The issue closes on May 5.
The units are proposed to be listed on BSE and NSE.
The investment managers have the right to retain oversubscription of up to 25 per cent of the issue size in tune with the InvIT Regulations.
Based on traffic growth and inflation effect, units of the IRB InvIT Fund may give a return of around 12 per cent, merchant bankers handling the issue said.
The issue is being made through the book building process and in compliance with the InvIT Regulations, wherein not more than 75 per cent of the issue will be available for allocation on a proportionate basis to institutional bidders. The investment manager and the selling unitholders may, in consultation with the merchant bankers, allocate up to 60 per cent of the institutional bidder category to anchor investors and strategic investors on a discretionary basis.
Further, not less than 25 per cent of the issue will be available for allocation on a proportionate basis to other bidders.
In case of under-subscription in any category, the unsubscribed portion in either category may be allotted to bidders in the other category at the discretion of the investment manager, in consultation with the merchant bankers and the designated stock exchange.
As per InvIT regulations, the sponsor will hold 15 per cent units for the initial three years.
IDFC Bank, Credit Suisse Securities (India) and ICICI Securities and IIFL Holdings are the book running lead managers to the issue.
Ravi Ranjan Prasad