In what could be the first fund-raising exercise through Infrastructure Investment Trusts (InvITs), toll road builder IRB Infrastructure Developers is planning to raise Rs 5,000-6,000 crore and is expected to file the draft red herring prospectus (DRHP) within a month.
Finance Minister Arun Jaitley had earlier proposed that any distribution made out of income of a special purpose vehicle (SPV) to InvITs having specified shareholding will not be subjected to dividend distribution tax.
InvITs enable individuals to pool investments into the infrastructure sector and earn a return on the income (after deducting expenditure). InvITs can invest in infrastructure projects, either directly or through SPVs, while in case of public-private partnership projects, such investments can be made only through SPVs.
IRB, a Mumbai-based build-operate-transfer (BOT) developer of roads, would have to raise the funds within 12 months of the listing and regulatory approvals.
The company intends to use the proceeds mainly to fund new road projects it intends to bid for and also for existing ones. The company would also be bringing its six National Highways Authority of India toll road projects, valued at Rs 7,000-8,000 crore, into the trust.