IRB Infra becomes the first company to list privately-placed InvIT
ECONOMY & POLICY

IRB Infra becomes the first company to list privately-placed InvIT

The IRB Infrastructure Trust (IRB InvIT), a privately placed InvIT sponsored by highway developer IRB Infrastructure, listed on the National Stock Exchange (NSE). The decision came months after the Securities and Exchange Board of India (SEBI) issued guidelines for the conversion of private unlisted InvITs into listed ones.

"The valuation of the trust units was determined based on third-party evaluation and was also supported by Trusts' investors." "The value determined is approximately 16 times FY 24 revenue, and it will continue to appreciate as more projects come in," the trust said.

GIC Associates, a Singapore sovereign wealth fund, currently owns 49 percent of the trust. The development is also a step towards opening up these new asset classes to public markets. So far, foreign pension funds and other institutional investors have dominated this market.

"The idea was to have better disclosure standards and bring in more transparency," said Virendra Mhaiskar, Chairman of the trust and Chairman & Managing Director of IRB Infra.

In the last four years, the Trust's project portfolio has grown dramatically, reaching nearly Rs 27,000 crores in Enterprise Value with a balance concession life of 18+ years, he added.

The Trust has acquired 10 BOT road assets totaling 6,275 lane kilometres in Maharashtra, Gujarat, Rajasthan, Goa, Karnataka, Haryana, Uttar Pradesh, and West Bengal.

IRB Infra, the IRB InvIT sponsor, has seen a year-on-year increase in toll income of 27% to Rs 352 crore in FY23.

Regulators have been introducing new guidelines for these asset classes, which have grown in popularity in recent years. REITs and InvITs were allowed to issue commercial papers last year, expanding their financing options.

The Centre is also working to reduce the tax burden on InvIT unitholders. Since 2021, units of the Power Grid InvIT have been listed on the NSE, while the National Highways Authority of India recently invited retail participation in its debentures.

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The IRB Infrastructure Trust (IRB InvIT), a privately placed InvIT sponsored by highway developer IRB Infrastructure, listed on the National Stock Exchange (NSE). The decision came months after the Securities and Exchange Board of India (SEBI) issued guidelines for the conversion of private unlisted InvITs into listed ones. The valuation of the trust units was determined based on third-party evaluation and was also supported by Trusts' investors. The value determined is approximately 16 times FY 24 revenue, and it will continue to appreciate as more projects come in, the trust said. GIC Associates, a Singapore sovereign wealth fund, currently owns 49 percent of the trust. The development is also a step towards opening up these new asset classes to public markets. So far, foreign pension funds and other institutional investors have dominated this market. The idea was to have better disclosure standards and bring in more transparency, said Virendra Mhaiskar, Chairman of the trust and Chairman & Managing Director of IRB Infra. In the last four years, the Trust's project portfolio has grown dramatically, reaching nearly Rs 27,000 crores in Enterprise Value with a balance concession life of 18+ years, he added. The Trust has acquired 10 BOT road assets totaling 6,275 lane kilometres in Maharashtra, Gujarat, Rajasthan, Goa, Karnataka, Haryana, Uttar Pradesh, and West Bengal. IRB Infra, the IRB InvIT sponsor, has seen a year-on-year increase in toll income of 27% to Rs 352 crore in FY23. Regulators have been introducing new guidelines for these asset classes, which have grown in popularity in recent years. REITs and InvITs were allowed to issue commercial papers last year, expanding their financing options. The Centre is also working to reduce the tax burden on InvIT unitholders. Since 2021, units of the Power Grid InvIT have been listed on the NSE, while the National Highways Authority of India recently invited retail participation in its debentures. Also Read Under PM-KUSUM initiative MSEDCL seeks bids for 225 MW solar energy Residents of Govindpur, Jamshedpur applaud Health Minister Banna Gupta

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