IRB InvIT, India's First Infra Trust Shares Make Market Debut, Gains 3%

Shares of IRB infrastructure investment trust (IRB InvIT), India's first infrastructure investment trust got listed on the exchanges today. IRB InvIT's shares rose as much as 3 per cent to Rs 105 against its issue price of Rs 102. The initial public offer (IPO) of IRB InvIT Fund was subscribed 8.6 times. The segment reserved for institutional category saw 10.8 times subscription, while the segment reserved for non-institutional investors was over-subscribed 4.9 times.

The Rs 4,655 crore IPO of IRB InvIT fund was priced in a band of Rs 100-102. Infrastructure investment trusts and real estate investment trusts are entities that invest in rent-yielding assets and distribute most of their income to shareholders as dividends.

IRB Infrastructure Developer, the sponsor of the issue, is one of the largest infrastructure development and construction companies in India in terms of net worth in the roads and highways sector according to the National Highways Authority of India (NHAI). The IRB Infrastructure Investment Trust (IRB InvIT) intends to own, operate and maintain a portfolio of six toll-road assets in the states of Maharashtra, Gujarat, Rajasthan, Karnataka and Tamil Nadu.

The investment manager, IRB Infrastructure Pvt. Ltd. , on behalf of the trust intends to utilize Rs. 4,200 crore out of the issue proceeds to repay/prepay loans of the project Special Purpose Vehicles (SPVs), which currently stands at nearly Rs 5,000 crore. The remaining amount will be used for general corporate purposes.

IRB InvIT fund shares closed 0.2 per cent lower at Rs 101.80 on the National Stock Exchange.