IRB InvIT Fund makes tepid debut on bourses

IRB InvIT Fund, the first in the infrastructure investment trusts (InvIT) space, today made a tepid debut on the bourses with the stock closing on a flat note.
Shares of IRB InvIT listed at Rs 103.25, up 1.22 per cent on BSE against the issue price of Rs 102. The stock later ended at Rs 101.79, a loss of 0.20 per cent. During the day, the scrip touched a high of Rs 105 and a low of Rs 99.65.
The stock fell by 2.3 per cent in intra-day trade.
At NSE, the scrip ended at Rs 101.80, down 0.19 per cent.

On the volume front, 168.15 lakh shares of the company were traded on BSE and over 7 crore shares changed hands at NSE during the day.
The InvIT Fund, sponsored by engineering company IRB Infrastructure Developers, commands a market valuation of Rs 5,908.91 crore.

The broader market was also weak, with the benchmark Sensex plunging 223.98 points to close at 30,434.79.
Speaking at the listing ceremony in Mumbai, IRB Chairman and Managing Director Virendra Mhaiskar said, "The trust will be perpetual and IRB will keep adding projects to it as and when they become operational to offer growth opportunities and decent returns to the unit holders."

"Till today, we have been funding our projects through debt or equity. But now InvIT gives us a third dimension to raise funds.
"This form will also ease infrastructure funding scenario and will also help banks get back the money they have invested in infrastructure projects. This money the banks can put back into the system," he said.
The muted listing is in contrast with the IPO of IRB InvIT Fund, which was oversubscribed 8.57 times. The institutional investors category was oversubscribed 10.81 times and other investors 5.89 times.
The offer raised more than Rs 5,000 crore and had 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.
IDFC Bank, Credit Suisse Securities and ICICI Securities were the lead managers to the offer.
The issue was open to bidding on May 3-5.