IRB InvIT Fund garners Rs 2,100 crore from anchor investors

IRB InvIT Fund today raised around Rs 2,100 crore from anchor investors ahead of its initial public offering opening tomorrow.
The InvIT Fund, sponsored by engineering company IRB Infrastructure Developers, has allotted 20.53 crore units on an average of Rs 102 to 28 anchor investors for a sum of Rs 2,094.50 criteria, it said in a statement.
Government of Singapore, Deutsche Global Infrastructure Fund, Birla Sunlife Mutual Fund and HDFC Standard Life Insurance Company are among the anchor investors.
The IPO, which is the first in the InvITs space, will open for subscription on May 3 and close on May 5. It commands a price band of Rs 100-102 per unit.

InvITs or infrastructure investment trusts are those debt instruments which will be traded in the market and can act as investment vehicles for the sponsors.
The listing of instruments enable promoters of infrastructure to monetise completed assets and raise funds for other long-term projects.

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 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 InvIT regulation, sponsor will hold 15 per cent units for initial three years.
IDFC Bank, Credit Suisse Securities and ICICI Securities are the lead managers to the issue, while Karvy Computershare is the register to the issue.
The units are proposed to be listed on BSE and National Stock Exchange (NSE).