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Reliance Infrastructure files for up to $550 mn infra investment trust issue

16 December, 2016

Anil Ambani-led Reliance Infrastructure Ltd on Friday filed a draft proposal with the capital markets regulator Securities and Exchange Board of India (SEBI) for an initial public offering of its Reliance Infrastructure InvIT Fund.

The infrastructure investment trust (InvIT) aims to raise Rs 3,000 crore ($440 mn) with an option to retain up to Rs 750 crore ($110 million) in case of oversubscription, Reliance Infrastructure said in a stock-exchange filing.

Reliance Infrastructure is among the six companies seeking to list an InvIT after SEBI released final guidelines for public issues of units of InvITs in May. IRB Infrastructure Developers Ltd, MEP Infrastructure Ltd, GMR Infrastructure Ltd, Sterlite Power Grid Ventures Ltd and IL&FS Transportation Networks Ltd are the other five companies.

Sterlite Power filed for an IPO of its InvIT earlier this month. IRB Infrastructure received regulatory approval for its InvIT in March and MEP got the nod in June.

Reliance’s InvIT will own 10 toll road assets with total length of 770 km across five states. It will have the option to acquire more assets in the future.

Reliance Infra InvIT will use net proceeds from the issue to cut debt taken on by special purpose vehicles (SPVs) to construct projects, according to the draft proposal.

Reliance Infrastructure develops projects through SPVs in sectors such as power, roads, metro rail and defence.

Reliance Infrastructure InvIT project SPVs’ consolidated income for the six months through September was Rs 542.42 crore compared with Rs 717.70 crore a year earlier.

Reliance Nippon Life Asset Management Ltd is the trust’s investment manager. Axis Capital Ltd, DSP Merrill Lynch Ltd, UBS Securities India Pvt Ltd, SBI Capital Markets Ltd and Yes Securities (India) Ltd are the lead managers to the issue.

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Reliance Infrastructure files for up to $550 mn infra investment trust issue

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