Initial public offering (IPO) of the country’s first infrastructure investment trust (InvIT) by IRB Infrastructure Developers is expected to hit the market in the first week of May, according to people with knowledge of the development. The company is looking to raise Rs 4,300 crore through the offer. IRB received approval for the launch of the InvIT IPO in February. It had filed the draft offer document with Securities Exchange Board of India (Sebi) in September 2016. The project entities which are proposed to form part of the initial portfolio of the Trust, are IRB Surat Dahisar Tollway Private Limited; IDAA Infrastructure Private Limited; IRB Jaipur Deoli Tollway Private Limited; IRB Tumkur Chitradurga Tollway Private Limited; IRB Talegaon Amravati Tollway Private Limited; and MVR Infrastructure and Tollways Private Limited.
According to draft papers, IRB InvIT’s IPO comprises fresh issue of units worth up to `4,300 crore by the trust and an offer for sale of units by IRB Infrastructure Developers and its subsidiaries — Modern Road Makers, Aryan Toll Road, ATR Infrastructure and Ideal Road Builders. 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 the 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 co-ordinators to the issue and ICICI Securities and IIFL are the book running lead managers.