The board of IndInfravit Trust, the Canada Pension Plan Investment Board (CPPIB)-backed infrastructure investment fund, on Tuesday approved raising capital worth Rs 2,204.82 crore through preferential issue of up to 18.8 crore units, at Rs 116.75 per unit, to some investors. The board of IndInfravit’s investment manager also approved preferential issue of up to 6.2 crore units at the same price “for consideration other than cash” to highways and roads construction major Sadbhav Infrastructure.
Sadbhav Infrastructure had in July last year announced 100% stake sale of nine of its operational road assets to IndInfravit, which is sponsored by the Larsen & Toubro group for over Rs 6,600 crore. The portfolio consists of road assets totalling 2,619 km across India. Sadbhav Infrastructure expects to receive proceeds of the sale after January 31, the company said in an exchange notification. Following the completion of the transaction, Sadbhav Infrastructure will hold up to 10% unit-holding in the infrastructure investment trust.
IndInfravit Trust’s units were listed in May 2018. Prior to the transaction, CPPIB, Allianz Capital Partners and OMERS Infrastructure together owned over 75% of the InvIT’s units. L&T Infrastructure Development Projects held the remaining units.