Leading stock exchange BSE today began 2-day mock trading session for infrastructure investment trusts (InvITs), ahead of next month’s IPO by first such trust. The exchange has developed the facility on its web based platform – IBBS (Internet based book building software) – to accumulate the bids from the applicants for InvITs.
“Exchange would conduct mock session for InvITs on the IBBS platform on Wednesday, April 26 and Thursday, April 27,” BSE said in a circular. The mock session would be conducted between 11 am and 5 pm, it added. InvITs are debt instruments that can be traded in the market and can act as investment vehicles for the sponsors.
IRB InvIT Fund, sponsored by engineering company IRB Infrastructure Developers, will launch its IPO on May 3 to raise more than Rs 5,000 crore.
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The IPO, which is the first in this segment, closes on May 5, and commands a price band of Rs 100-102 per unit. IRB’s InvIT fund expects to raise Rs 5,035 crore comprising fresh issue of units aggregating to Rs 4,300 crore and an offer-for-sale of nearly 3.48 crore units by IRB Infra Developers and its arms – Modern
Road Makers, Aryan Toll Road, ATR Infra and Ideal Road Builders. The listing of instruments enable promoters of infrastructure to monetise completed assets and raise funds for other long-term projects.