Virendra D Mhaiskar, chairman and managing director of Mumbai-listed road company IRB Infrastructure Developers Ltd, has picked up a 1.29% stake in IRB InvIT Fund for Rs 56.7 crore ($7.8 million), raising the shareholding to 1.31%.
Mhaiskar bought 75,00,000 units at Rs 75.60 apiece in the infrastructure investment trust sponsored by IRB Infrastructure, the company said in a statement.
The fund's units closed at Rs 76.86 apiece on the BSE on Tuesday, recording a market capitalisation of Rs 4,461.7 crore.
Tushar Kawedia, chief financial officer of the fund, said the investment by the promoter of IRB Infrastructure echoes the confidence in the quality of the assets.
An InvIT, which owns and manages income-generating infrastructure projects, allows participation by public investors.
The fund, which made its stock market debut in May 2017, manages seven operational road assets of total value Rs 7,560 crore spread across six states: Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu and Punjab.
IRB Infrastructure was the first company to float an InvIT after the Securities and Exchange Board of India notified regulations in 2016 for setting up such trusts as well as real estate investment trusts (REITs).
IRB InvIT Fund’s consolidated revenue from operations stood at Rs 922 crore for the year through March 2018. Its earnings before interest, tax, depreciation and amortisation stood at Rs 819.13 crore.