IRB Infrastructure Developers has launched the country's first investment trust InvIT on a more attractive valuation than market participants had been expecting in an attempt to ensure the new asset class gets off to a strong start.
InvITs are spin-offs by developers of completed infrastructure projects, intended to free up much-needed capital to boost the country's infrastructure drive.
IRB's Rs46.5 billion $724 million deal is being pitched on a narrow price range of Rs100 to Rs102 per unit, which translates to a 2018 yield of 12% and lifetime yield of 12.4% both on a post-withholding-tax basis.
The upfront yield represents...
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