The initial public offering (IPO) of India’s first infrastructure investment trust (InvIT) from IRB Infrastructure Developers was on Thursday subscribed 0.62 times, the second day of its issue. Investors bid for 15.57 crore shares of the 25.09 shares on offer. The InvIT hopes to raise around Rs 5,033 crore at a price of between Rs 100 and Rs 102 per share. The issue received bids for 6.73 crore shares from institutional investors against their quota of 13.69 crore shares. Non-institutional investors bid for 8.83 crore shares of the 11.40 crore shares reserved for them, or 0.77 times.
On Tuesday, IRB Infrastructure Developers had raised Rs 2,094.46 crore from a clutch of 28 anchor investors. Investors who acquired shares in the anchor allotment include Government of Singapore, Platinum International Fund, BNP Paribas, Birla Sunlife, Deutsche Global, Morgan Stanley and IL&FS among others.
The majority of the money amounting to Rs 3,350 crore would be utilised to repay the external debt of the underlying SPVs and the remaining Rs 1,700 crore would be utilised to pay back the sponsor — IRB’s sub-debt and equity. At an enterprise value of Rs 5,922 odd crore, IRB as a sponsor would be holding around Rs 900 crore worth of units, which are 15% of the enterprise value. There are six project entities proposed to form part of the initial portfolio of the trust.
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. Further, not less than 25% of the issue shall be available for allocation on a proportionate basis to other bidders, in accordance with the InvIT regulations.
IRB Infrastructure, which is the investment manager, reserves the option to retain over subscription of up to 25% of the issue size in accordance with InvIT regulations. The issue will constitute at least 25% of the total outstanding units on a post-issue basis. IDFC Bank and Credit Suisse are global coordinators to the issue and ICICI Securities and IIFL are the book running lead managers.