RInfra InvIT Fund gets Sebi nod for Rs 2,500-cr IPO

New Delhi: Reliance Infrastructure InvIT Fund has received market regulator Sebi's approval to raise Rs 2,500 crore through an initial public offering.

Anil Ambani Group flagship RInfra had filed revised draft papers with Sebi last month for its proposed InvIT Fund IPO, scaling down the issue size to Rs 2,500 crore from Rs 3,000 crore earlier.

The InvIT Fund has received final "observation" from Sebi for its proposed IPO, which is necessary for any company to launch public offer, RInfra said in a statement today.

The initial public offer comprises units aggregating to Rs 2,500 crore with an option to retain over subscription of up to 25 per cent of the issue size in accordance with the InvIT Regulations.

Last December, RInfra had filed draft papers with the Securities and Exchange Board of India (Sebi) to garner Rs 3,000 crore through InvIT. Infrastructure investment trust (InvIT) are debt instruments which can be traded in the market and can act as investment vehicles for the sponsors.

Listing of instruments enables promoters to monetise completed assets and raise funds for other long-term projects. RInfra will be the sponsor of InvIT Fund and Reliance Nippon Life AMC will be its investment manager.

The issue is being managed by Axis Capital, DSP Merrill Lynch, UBS Securities, SBI Capital Markets and Yes Securities. So far, IRB Infrastructure Developers' infrastructure investment trust IRB InvIT Fund and India Grid Trust, an InvIT sponsored by Sterlite Power Grid Ventures Ltd, have hit the market for IPOs.