S&R Associates advises IRB Infrastructure Trust in rights issue

S&R Associates advises IRB Infrastructure Trust in rights issue

IRB Infra invested ₹194.63 crore in the issue to maintain 51 per cent holdings and GIC Affiliates, a Singapore Sovereign Fund, subscribed to 49 per cent at an investment value of ₹187 crore

Indian law firm S&R Associates has advised and represented IRB Infrastructure Trust in a rights issue for an amount of ₹3.82 billion to the eligible unitholders of the private InvIT.

This includes IRB Infrastructure Developers Limited (the sponsor) and affiliates of GIC. This is the second rights issue by India's first unlisted infrastructure investment trust.

The S&R team was led by partner Sandip Bhagat and included associates Pratichi Mishra, Utkarsh Mishra and K.S. Pradham.

IRB Infra completes ₹381.63 crore Fund Raise in IRB Infrastructure Trust, the Private InvIT, by way of Rights Issue.

· IRB Infra invested ₹194.63 crore in the issue to maintain 51 per cent holdings and GIC Affiliates, a Singapore Sovereign Fund, subscribed to 49 per cent at an investment value of ₹187 crore

· The announcement came to coincide with the 23rd Foundation day of Company in Mumbai on 27 July 2021.

IRB Infrastructure Developers Ltd, one of the leading highways infrastructure developers in India, has completed a total fundraise of ₹381.63 crore with an investment of ₹194.63 crore in its sponsored IRB Infrastructure Trust, the Private InvIT jointly launched by the Company and Singapore-based GIC Affiliates with 51 per cent and 49 per cent holding in it respectively.

Commenting on the development, Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infra said, "We are very happy to announce our investment in the Trust on the 23rd Foundation Day of IRB Infra, which has relentlessly worked for India's highways infrastructure development sector over all these years and delivered world-class highways infrastructure across all geographical terrains of the nation. We express our continued commitment towards the same in years to come."

He further added, "With this investment of GIC Affiliates ₹194.63 crore in the IRB Infrastructure Trust, Company's aggregate equity investments across its Road Portfolio, comprising wholly-owned concessions, 51 per cent ownership in the Private InvIT and 16 per cent ownership in Public InvIT have crossed ₹9,000 crore mark."

IRB Infrastructure Trust, the Private InvIT, sponsored by IRB Infrastructure Developers Ltd and the GIC Affiliates, Singapore-based Sovereign Fund, completed the fundraising of ₹381.63 crore by way of Rights Issue.

The Sponsors IRB Infra invested ₹194.63 crore, the GIC Affiliates invested ₹187 crore.

To re-iterate, the GIC Affiliates had invested approx. ₹3,750 crore in February 2020, as the first tranche towards its investment in the IRB Infrastructure Trust, which was subsequently followed by the second tranche of ₹510 crore raised in November 2020 by way of Rights Issues with the respective holding of 51:49 for Sponsor IRB Infrastructure Developers Ltd and GIC Affiliates.

All projects under the Private InvIT are revenue-generating, including three projects, which are under Tolling and Construction. The Company has said that the funds raised will be utilized towards equity requirements for under-construction projects.

Click to know more about S&R Associates