Reliance Infrastructure InvIT Fund (RInfra InvIT) has got a final nod from the Securities and Exchange Board of India (Sebi) to float its proposed Initial Public Offering (IPO). This will be the third InvIT IPO to get launched after IRB InvIT and Sterlite Power promoted IndiaGrid InvIT that were launched earlier this month.
In a statement on Wednesday, RInfra said, “RInfra InvIT has received the final observation letter from SEBI for its proposed IPO of units representing an undivided beneficial interest in the Trust”.
The proposed issue size is Rs 2,500 crore with an option to retain over subscription up to 25% of the issue size. Sources told FE that RInfra InvIT IPO is likely to be launched in early June.
There are seven project entities which are proposed to form part of the initial portfolio of the Trust. These include DS Toll Road Limited, GF Toll Road Private Limited, JR Toll Road Private Limited, NK Toll Road Limited, SU Toll Road Private Limited, TD Toll Road Private Limited, and TK Toll Road Private Limited.
RInfra had filed a revised draft offer document with SEBI on May 5 reducing its offer size from the earlier Rs 3,000 crore. According to the earlier offer document filed with Sebi on December 16, the company had proposed to raise Rs 3,000 crore with 10 project entities as part of InvIT. However, National Highways Authority of India (NHAI) gave permission for only 7 of the 11 road assets to be a part of the Trust, as the remaining four had not completed two years of operations.
In the revised draft offer document, the RInfra has listed DA Toll Road Private Limited, HK Toll Road Private Limited, KM Toll Road Private Limited and PS Toll Road Private Limited as project entities retained by the sponsor (RInfra).
The issue is being made through the book building process and in compliance with the InvIT regulations, wherein not more than 75% of the issue shall be available for allocation on a proportionate basis to institutional bidders, provided that the investment manager may, in consultation with the global coordinators and book running lead managers (GCBRLM) and the book running lead managers (BRLM), allocate up to 60% of the institutional bidder category to anchor investors and strategic investors on a discretionary basis in accordance with the InvIT regulations.
Further, not less than 25% of the issue shall be available for allocation on a proportionate basis to other bidders, subject to valid bids being received at or above the issue price.
Reliance Nippon Life Asset Management Limited is the investment manager to the InvIT. Axis Capital, DSP Merrill Lynch, and UBS Securities are acting as GCBRLMs, while SBI Capital Markets and Yes Securities are the BRLMs.