IRB InvIT Fund IPO oversubscribed 8.57 times on last day

The initial public offer of IRB InvIT Fund to raise more than Rs 5,000 crore was oversubscribed 8.57 times on the last day of offer today.

The offer received bids for over 215 crore shares against the total issue size of more than 25 crore shares, data available with the NSE till 1900 hours showed.

Institutional Investors' category was oversubscribed 10.81 times and other investors 5.89 times.

"We are grateful to all investors for their overwhelming response to India's first ever InvIT Fund IPO. This is indicative of the trust and confidence shown by them in IRB Infra, which has a proven track record of successfully executing large BOT projects across all terrains of country.

"It is a clear indication of high potentials of the new product in future and we are proud to be the pioneer in bringing it for investors across the globe," IRB Infrastructure CMD Virendra D Mhaiskar said.

IRB InvIT Fund on Tuesday raised around Rs 2,100 crore from anchor investors.

The IPO, the first in the InvIT space, has a price band of Rs 100-102.

InvITs or infrastructure investment trusts are those debt instruments that will be traded in the market and can act as investment vehicles for sponsors.

The listing of instruments will enable promoters to monetise completed assets and raise funds for other long-term projects.

The IRB InvIT fund comprises fresh issue of units aggregating 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 InvIT trust has six operational road assets and the proceeds from the IPO will be utilised mostly to repay the debt of its special purpose vehicles (SPVs) created for the toll-road projects.

As per the InvIT regulation, the sponsor will hold 15 per cent units for an initial three years.

IDFC Bank, Credit Suisse Securities and ICICI Securities are the lead managers.

The units are proposed to be listed on the BSE and the National Stock Exchange (NSE).

"This issuance opens up a new avenue in infrastructure financing introducing the concept of unit capital which we would see considerable amount of money being raised through this route in the next few months," ICICI Securities Ltd MD and CEO Shilpa Kumar said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel