The primary market has turned active and another large public issue has now opened its doors for investors. This time, the spotlight is on Cube Highways Trust InvIT, a Rs 5,000 crore issue that opened for subscription today, July 22.
But before applying, what should investors actually look at? Is there enough institutional interest? What does the grey market indicate? And when will the units be listed?
Here are five important things investors should know before making a decision –
A Rs 5,000 crore issue opens for bidding
Cube Highways Trust InvIT opened for public subscription on July 22 and will remain open until July 24.
The issue has been priced in the range of Rs 151-152 per unit. Investors will have to apply for at least 95 units, and bids can be placed in multiples of 95 units thereafter.
Unlike many equity IPOs, this issue is an Infrastructure Investment Trust (InvIT), which allows investors to participate in infrastructure assets through listed units.
Anchor investors committed over Rs 1,687 crore before opening
The trust raised Rs 1,687.5 crore through its anchor investor placement by allotting more than 11 crore units to 59 anchor investors at the upper end of the price band.
Several domestic mutual fund houses participated through multiple schemes, while global institutional investors and insurance companies were also among the investors in the anchor book.
How is the IPO divided among investors?
The issue has been structured with a larger allocation for institutional investors.
Up to 75% of the offer has been reserved for Qualified Institutional Buyers (QIBs), while at least 25% has been earmarked for Non-Institutional Investors (NIIs).
This allocation structure is commonly followed for InvIT issues, where institutional participation generally forms a significant part of the overall subscription.
What does the grey market indicate?
For Cube Highways Trust InvIT, the latest GMP stands at Rs 0. This indicates that the units are currently trading around the issue price in the unofficial market without any premium or discount.
While GMP offers an indication of market sentiment, it remains an unofficial indicator and should not be considered a guarantee of listing performance.
Allotment and listing
The basis of allotment is expected to be finalised on July 27, followed by the credit of units and refunds on July 28. The InvIT is scheduled to make its stock market debut on both the BSE and NSE on July 29.
