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Photo Credit: Mukul Mudgal/VCCircle

GIC leads anchor investors as IRB InvIT Fund raises $326 mn

02 May, 2017

IRB InvIT Fund on Tuesday raised Rs 2,094.46 crore (around $326.24 million) through the sale of units to anchor investors ahead of its three-day public offering which opens on Wednesday.

The fund, sponsored by listed IRB Infrastructure Developers Ltd, allotted 205.34 million units to 23 institutional investors at Rs 102 per unit, the upper end of the Rs 100-102 price band, stock exchange data showed.

Investors who acquired units ahead of the first public offering of an infrastructure investment trust (InvIT) in India include Singapore’s sovereign wealth fund GIC, Monetary Authority of Singapore, Australia’s Platinum Asset Management, Singapore’s Schroder Investment Management and UK’s National Westminster Bank.

VCCircle had reported that GIC was among the marquee global investors lining up to take part in the public issue of IRB InvIT Fund.

Anchor investors are institutional investors who accept a one-month lock-in period for a sizeable allocation of securities and support a public offering. Their participation highlights investors’ confidence in a public offering and sets a benchmark for the investor community at large.

Among domestic asset managers, Birla Sun Life Trustee Company and Pioneer Asset Management acquired IRB InvIT Fund’s units in the anchor allotment.

Among domestic insurers, HDFC Standard Life and Birla Sun Life participated in the anchor allotment.

The anchor book opens one business day prior to the launch of a public offering.

The strong investor interest gains importance as IRB Infra becomes the first road developer to float an InvIT, a tool first proposed by the capital markets regulator Securities and Exchange Board of India (SEBI) over three years ago but tax issues and regulatory hurdles led to delays.

IRB’s InvIT Fund is seeking to raise as much as Rs 4,655 crore (around $725 million) through the public offering.

The offering comprises a fresh issue of units to raise Rs 4,300 crore and an offer for sale of 34.76 million units by existing unit holders in the trust.

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GIC leads anchor investors as IRB InvIT Fund raises $326 mn

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