IRB InvIT raises Rs 2,351 crore; portfolio to expand to 11 highways

The two assets are Solapur Yedeshi NH211 in Maharashtra and Chittorgarh Gulabpura NH79 in Rajasthan. Both are build-operate-transfer (BOT) projects. The InvIT said a part of the proceeds will also go towards general purposes.

IRB InvIT raises Rs 2,351 crore through unit issue 

The institutional placement accounted for Rs 2,000 crore. The preferential allotment brought in Rs 351 crore. The sponsor subscribed to the preferential allotment, which was made on September 25.

The placement opened on September 24 and closed on September 28. A committee of the board of IRB Infrastructure Private Limited, the trust’s investment manager, approved the allotment on Tuesday.

The trust issued 317,460,316 units at Rs 63 each. The price includes a discount of Rs 1.26 per unit, or 1.96% of the floor price. The floor price was set under the SEBI InvIT Regulations and the related master circular. After the allotment, the trust’s unitholding capital stands at 1,653,060,316 units.

Anahera Investment takes 17.5% of IRB InvIT issue 

Six allottees received more than 5% of the units offered. Anahera Investment, a foreign portfolio investor, took 55,555,555 units, or 17.5% of the issue. Its post-issue holding in the trust is 15.96%, including units it held earlier.

Arvesta Financial Services and Prazim Trading and Investment Company were allotted about 39.68 million units each. Each received 12.5% of the issue and will hold 2.40% of the trust.

Schemes of ICICI Pension Fund under the National Pension System received 6.25% of the issue. NEO Alternatives Investment Trust, through its Neo Treasury Plus Fund, received 6%. Three HSBC Mutual Fund schemes together received 5.47%. The InvIT said domestic and international investors took part. It listed pension funds, insurers, mutual funds and family offices among them.

IRB Infrastructure invests Rs 351 crore to maintain stake 

IRB Infrastructure Developers said its Rs 351 crore investment is meant to maintain its stake of about 16% in the InvIT. It is the sponsor and project manager of the trust.

The company said the private InvIT expects to receive about Rs 2,744 crore as equity consideration once the transaction is completed. The release said the sum will let the private trust pursue new highway projects. The company added that the transaction is subject to conditions precedent.

IRB InvIT portfolio to expand to 11 highway assets 

The public InvIT now runs nine highway assets. Seven are BOT projects, and two are hybrid annuity model (HAM) projects. They cover 4,170 lane-km across eight states and have an enterprise value of about Rs 17,900 crore. The weighted average concession life is over 16 years.

With the two new assets, the portfolio will have 11 operational projects. Nine will be BOT and two HAM. Lane length will rise to 5,314 km. Enterprise value will be over Rs 20,000 crore, and the weighted average concession life will be around 17 years.

IRB InvIT’s second fundraise since 2017 

This is the second fund raise by the InvIT since its listing in 2017. The first came last year, when it raised Rs 4,253 crore. That money was used to acquire three highway assets with an enterprise value of Rs 8,643 crore from IRB Infrastructure Trust.

About IRB Infrastructure Developers

IRB Infrastructure Developers is a roads and highways infrastructure platform. Its portfolio has 27 revenue-generating highway assets worth about Rs 94,000 crore across 13 states. The company says its assets see about 1.5 million vehicle crossings a day and account for nearly a tenth of India’s toll revenue. The weighted average residual concession life of the portfolio is about 21 years. 

IRB Infrastructure Developers share price today

IRB Infrastructure Developers’ share price decreased 1.92% as of early trade on September 29. The company’s share price decreased 13.12% in the past month. Furthermore, IRB Infrastructure Developers’ share price declined 17.76% in the past year.