IRB Infrastructure Trust has sought SEBI’s approval to float units of the infrastructure investment trust (InvIT).
This will be the second issue of InvIT of the Mumbai based toll road developer. The first issue IRB Infrastructure InvIT was launched in May 2017, which raised close to Rs.5000 crore.
As of September 30, 2019, it owns toll road assets comprising 5,892 kms of highway.
At present, there are nine InvITs listed on the exchanges with Indian Highways Concessions Trust and IRB Infrastructure Trust waiting for regulator’s approval to issue their units. India Grid Trust, India Infrastructure Trust, IndInfravit Trust, IRB Infrastructure Developers, IRB InvIT Fund, MEP Infrastructure, Oriental InfraTrust, Reliance Industrial Investments, and Tower Infrastructure Trust are the nine InvITs registered with SEBI.
An InvIT is like a mutual fund that pools funds from many institutional investors for investing in infrastructure projects to earn regular returns. InvITs invest in infrastructure building activities such as roads, telecommunication towers or power plants. Institutional investors like mutual funds and HNIs invest in units of InvITs as the minimum ticket size is Rs.10 lakh.