IRB Infrastructure
Developers is planning to raise ₹5,000-6,000 crore, expected to file the
DRHP within a month. IRB intends to use the proceeds mainly to fund new road
projects it intends to bid for and also for existing ones. The company would
also be bringing its six NHAI toll road projects, valued at ₹7,000-8,000
crore, into the trust. The company has mandated Deutsche Bank, Credit Suisse
and IDFC Bank as merchant bankers for InvITs, sources close to the development
told BusinessLine.
Other
players are in the queue
Companies
such as Adani Group, GMR Infrastructure, IL&FS Transportation Networks and
L&T are also understood to be looking at InvITs to raise funds. Sterlite
Power Transmission, a company that was demerged from Sterlite Technologies, is
also planning to file the DRHP for InvITs by September. SPTL had filed an
application for InvITs with SEBI in June. According to the sources, it was
planning to raise ₹2,500-3,000 crore.
About
InvIT
IRB
fund raising could be the first fund-raising through an InvIT after it was
first proposed in the Union Budget in 2014. In this year’s Budget speech,
Finance Minister had proposed that any distribution made out of income of a SPV
to InvITs having specified shareholding will not be subjected to dividend
distribution tax, giving a much-needed fillip to the trust.
InvITs,
much like mutual funds, enable individuals to pool investments into the
infrastructure sector and earn a return on the income (after deducting
expenditure). InvITs can invest in infrastructure projects, either directly or
through SPVs, while in case of public-private partnership projects, such
investments can be made only through SPVs.In India, InvITs are regulated by
SEBI and are mandated to be listed.
Source: http://buff.ly/2b5YU1r
