IPO last day: IRB InvIT Fund oversubscribed 8.57 times

The initial public offer of IRB InvIT Fund to raise more than Rs 5,000 crore was oversubscribed 8.57 times on the last day of offer on Friday.

The offer received bids for over 215 crore shares against the total issue size of more than 25 crore shares, data available with the NSE till 1900 hours showed.

Institutional Investors' category was oversubscribed 10.81 times and other investors 5.89 times.

"We are grateful to all investors for their overwhelming response to India's first ever InvIT Fund IPO. This is indicative ofthe trust and confidence shown by them in IRB Infra, which has a proven track record of successfully executing large BOT projects across all terrains of country.

"It is a clear indication of high potentials of the new product in future and we are proud to be the pioneer in bringing it for investors across the globe, IRB Infrastructure CMD Virendra D Mhaiskar said. IRB InvIT Fund on Tuesday raised around Rs 2,100 crore from anchor investors. The IPO, the first in the InvIT space, has a price band of Rs 100-102.

InvITs or infrastructure investment trusts are those debt instruments that will be traded in the market and can act as investment vehicles for sponsors. The listing of instruments will enable promoters to monetise completed assets and raise funds for other long-term projects. The IRB InvIT fund comprises fresh issue of units aggregating Rs 4,300 crore and an offer-for-sale of nearly 3.48 crore units by IRB Infra Developers and its arms - Modern Road Makers, Aryan Toll Road, ATR Infra and Ideal Road Builders.

The InvIT trust has six operational road assets and the proceeds from the IPO will be utilised mostly to repay the debt of its special purpose vehicles (SPVs) created for the toll-road projects.