Sebi amends InvITs rule; specifies draft filing fees for IPO, rights issue

Capital markets regulator Sebi came out with a new norm to implement draft filing fees to be paid by infrastructure investment trusts (InvITs) for initial offer and rights issue.

Now InvITs are required to pay non-refundable filing fees of 0.1 per cent in case of initial offer and 0.05 per cent in case of rights issue of the total issue size, including green shoe option, at the time of filing of draft placement memorandum or offer letter with respect to private placement, Sebi said in a notification uploaded on its website on Tuesday.

Earlier, the InvIT was required to pay non-refundable filing fees of 0.1 per cent of the total issue size, irrespective of the type of issue.

To give this effect, the Securities and Exchange Board of India (Sebi) has amended InvIT rules.

InvITs are relatively new investment instruments in the Indian context but extremely popular in global markets. It comprises a portfolio of infrastructure assets such as highways, power transmission assets.

A total of Rs 21,195 crore was collected through InvITs in 2021-22. The funds were raised through initial offer, preferential issue, institutional placement and rights issue. The total fundraise also included money collected by unlisted InvITs.

At present, 15 InvITs are registered with Sebi and seven of them are listed on the stock exchanges.

InvITs are innovative and smart ways for developers to monetise part of their commercial and infrastructure assets. These are otherwise long gestation assets and these vehicles provide an opportunity to release capital to reinvest in new projects.

For investors too, this provides an avenue to participate in income-generating assets which are otherwise beyond one's reach given the size and complexity of managing operations.