IRB Infra to raise borrowing limit to form InvIT

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New Delhi | Published: August 14, 2015 12:46:34 AM

Mumbai-based IRB Infrastructure Developers announced on Thursday that it intends to form an Infrastructure Investment Trust...

Mumbai-based IRB Infrastructure Developers announced on Thursday that it intends to form an Infrastructure Investment Trust (InvIT) under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, for which it plans to increase its borrowing limit by Rs 16,000 crore.

Virendra D Mhaiskar, the IRB Infrastructure Developers CMD, said the tax structure that the government is proposing is conducive for InvITs. “We feel there is enough clarity on the taxation on this (InvIT) instrument and we plan to float InvIT by the end of FY16,” he said, refusing to share details of the quantum of funds the company wants to raise by way of InvIT.

To enable the process, the company will seek shareholders’ approval to increase the limit under Section 180 (1)(a) of the companies Act 2013 from Rs 20,000 crore to Rs 36,000 crore.

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