IRB InvIT Fund raises ₹2,351 crore, including ₹351 crore from its sponsor

What happened

• IRB Infrastructure Developers, the trust's sponsor, told the exchanges on 29 September that IRB InvIT Fund had completed a fund-raise of ₹2,351 crore.
• Business Standard reported that ₹2,000 crore came from an institutional placement of units and ₹351 crore from a preferential allotment to the sponsor.
• Investors in the placement included pension funds, insurance companies, mutual funds and family offices, according to Business Standard.
• HDFC Sky reported that the sponsor's ₹351 crore keeps its holding in the trust at about 16%.

Why it matters

An InvIT owns infrastructure assets, here highways, and passes most of the cash they earn to unit holders. New units add to the number of units in issue.

Good to know: In an institutional placement a listed trust sells new units to large institutional investors without a public offer. A preferential allotment sells units to a chosen investor, here the sponsor.

Key facts

Total raised

₹2,351 crore

Institutional placement

₹2,000 crore

Preferential allotment to sponsor

₹351 crore

Read the source

• IRB Infrastructure Developers: fund-raise completion (filing listed 29 Sep, 9:04 AM)NSE corporate announcements
• IRB InvIT successfully concludes fund raise of Rs 2,351 crBusiness Standard
• Successful completion of fund raising of Rs. 2,351 crores by IRB InvIT FundIRB Infrastructure Developers
• IRB InvIT Fund raises Rs 2,351 crore through preferential allotmentHDFC Sky