India’s first Infrastructure Investment Trust (InvITs) may soon see the light of the day. Sources indicate that the debt-laden GMR Group may list its roads portfolio under this trust.
InvITs enable creation of an investment product for arranging long-term financing for infrastructure projects. Investors can invest in specific products linked while providing necessary safeguards. More importantly, it helps the corporate raise significant amounts of capital for their projects.
Ritu Singh of CNBC-TV18 reports that the GMR Group, through the holding company for its roads projects- GMR Highways, is looking to raise upto Rs. 4,000 crores through an InvIT listing, which might include few of its six completed highway projects.
Given that this is the first such trust to be launched by an Indian corporate, GMR has sought more clarity on taxation from SEBI. The company may file the Draft Red Herring Prospectus (DRHP) by the end of this year.
The group has been saddled with a huge debt, and is looking to pay off its corporate debt entirely at least through the money raised in this listing.
While no formal bankers have been appointed yet, Citi, Morgan Stanley, Nomura and Merryl Lynch are currently advising GMR on this transaction.
In a response to this, a GMR group spokesperson said “GMR is pursuing various options to reduce debt and raise resources for the group. As a policy, we do not comment on enquiries related any specific deal.”
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