Singapore’s sovereign wealth fund GIC is likely to invest around Rs 1,000-1,200 crore in IRB InvIT Fund, India’s first publicly traded infrastructure investment trust, sponsored by construction firm IRB Infrastructure, people aware of the development have told Moneycontrol.
The proposed investment by GIC is part of IRB InvIT’s plans to mobilise funds to acquire three large road assets from another IRB group sponsored infrastructure investment trust.
In May, IRB InvIT Fund and IRB Infrastructure Trust - the private InvIT of IRB group with Singapore sovereign wealth fund GIC - had entered into a non-binding offer for the transfer of latter’s three BOT (build, operate, transfer) highway assets - Hapur Moradabad Highway, Kaithal Rajasthan Highway and Kishangarh Gulabpura Highway - with a combined total of 1,800 lane Kilometers at an equity value of Rs 4,905 crore and an enterprise valuation of Rs 8,436 crore.
The InvIT has already secured shareholder approval to raise as much as Rs 5,000 crore to finance the acquisition through various fundraising routes, including a qualified institutional placement (QIP) offering.
Moneycontrol had reported on July 9 that IRB InvIT Fund has appointed investment banks Kotak Mahindra Capital and Citigroup to start work on raising funds through a QIP.
Sources said that IRB InvIT Fund is looking to raise around Rs 4,000 crore, a substantial part of which will come from GIC, while the rest will come from other institutional investors, domestic and foreign.
“The overall deal could be a mix of a QIP and a preferential allotment. GIC’s investment may happen through the QIP or pref allotment.The details are still being worked out,” one of the sources said.
Spokespersons for GIC and IRB could not be immediately reached for a comment.
First Public InvIT
IRB InvIT Fund was the first infrastructure investment fund to list on Indian stock exchanges in 2017, after markets regulator Sebi introduced the InvIT and Real Estate Investment Trust (REIT) regulations in 2014.
The IPO saw the IRB-sponsored trust raise over Rs 5,000 crore through a mix of primary share sale worth Rs 4,300 crore and an offer for sale by existing shareholders.
The InvIT originally had a portfolio of five toll roads and later in 2022, it acquired a hybrid annuity model (HAM) road, the Vadodara-Kim Expressway for a consideration of Rs 342 crore form its sponsor IRB Infrastructure Developers.
The current portfolio has an enterprise value of Rs 7,850 crore, and generated a gross toll collection of Rs 1,040 crore during FY25, higher by three percent over previous financial year.
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