TVS Industrial & Logistics Parks (ILP), a part of the TVS Mobility Group, is set to raise a “significantly higher amount” through an Infrastructure Investment Trust (InvIT) than originally planned, driven by an increase in the company’s scale and size, said Ravikumar Swaminathan, founder and vice chairman of TVS ILP.
The company had reportedly planned to raise around $ 100 million to $ 150 million through InvIT.
“This is a function of the company’s valuation. Last year, when we evaluated the InvIT, we were not operating an 11 million sq ft portfolio. Our operational portfolio was significantly smaller. Now that we have 11 million sq ft operational, it warrants a higher raise through the InvIT,” Swaminathan stated.
Regarding the timeline for the InvIT, he stated that plans are on track and discussions with investors are ongoing. “It is difficult to put an exact figure on how much we will raise, but within a month or so we should have a definite number. We have already submitted an application to Sebi regarding the InvIT,” he added.
TVS ILP currently has a portfolio totaling 20 million sq ft, which includes 11 million sq ft of operational assets and 9 million sq ft of projects under development.
“We aim to reach 20 million sq ft by 2026. We’ve been growing at a compound annual growth rate (CAGR) of 33 to 36% over the last five years, and we plan to maintain that growth trajectory,” Swaminathan noted.
Earlier this year, NDR InvIT Trust, sponsored by warehousing company NDR Warehousing, raised Rs 880 crore through a private placement of its units. Additionally, another major player in the warehousing sector, Indospace, is reportedly looking to raise between $700 million and $800 million through an InvIT.
TVS ILP has previously secured funding from the UK’s CDC Group and NIIF Infrastructure Finance. The company has centers in tier-II and III cities such as Cuttack, Hosur, Siliguri, and Vijayawada. “We are focusing on expanding across the country. We are the only player present in Northeast India, and we will deepen our presence in these markets,” Swaminathan said.
He said the impetus given by the Union government in Budget and through other policy measures is significantly helping players such as TVS ILP.