First InvIt in country aims to fetch $400 million by July

In order to reduce the debt and for funding the new projects, Infrastructure Leasing & Financial Services Ltd. is planning to raise a fund of about $400 million through the private sale of units in an Infrastructure Investment Trust within the next six weeks.   

“We have assessed the demand and investors are comfortable with the InvITs sale,” Ramesh Bawa, managing director and CEO of IL&FS Financial Services Ltd told a news portal.

IRB Infrastructure Developers Ltd. and Sterlite Power Grid Ventures Ltd. completed public placements this year and issue would be the first private placement of an InvIT after these companies. InvIT traded at 97.85 rupees, below the offer price of 102 rupees per unit, on Wednesday and Sterlite’s India Grid Trust units are yet to foray into the markets. 

SEBI designed the structure of InvIT in the line of Real Estate Investment trust which is listed across the world. Similar proposition is offered by the InvIT where investor can have a stable return from the income generation infrastructure asset (roads and power transmission line)

There are some companies who consider raising funds through the trust instruments such as Reliance Infrastructure Ltd, GMR Infrastructure Ltd and MEP Infrastructure Developers Ltd.