RInfra had approached NHAI to get a nod for nine highway projects that the company is operating
Reliance Infrastructure (RInfra) will reapproach the Securities and Exchange Board of India (Sebi) for its Infrastructure Investment Trust (InvIT) within a week, in order to raise Rs 3,000 crore in May.
"We have now got National Highways Authority of India's (NHAI) approval. Next week, we will be going back to Sebi with all the approvals, to get the final approval. Once we get a final clearance, we are confident of launching the InvIT, in May," said Lalit Jalan, chief executive officer, RInfra.
RInfra had approached NHAI to get a nod for nine highway projects that the company is operating. For the tenth road project, an approval came from Haryana state government.
The projects listed under RInfra InvIT are Namakkal-Karur (Tamil Nadu), Trichy-Karur (Tamil Nadu), Salem-Ulundurpet (Tamil Nadu), Trichy-Dindigul (Tamil Nadu), Dindigul-Samayanallore (Tamil Nadu), Reengus-Jaipur (Rajasthan), Gurgaon-Faridabad (Haryana), Pune-Satara (Maharashtra), Kandla-Mundra (Gujarat) and Hosur-Krishnagiri (Tamil Nadu).
The concession period of the highway projects ranges from 18 to 30 years. RInfra is among the biggest companies with NHAI under the Build-Operate-Transfer (BOT) scheme.
As per the plans, the RInfra InvIT aims to raise Rs 3,000 crore. In case of an oversubscription, it may have an option of retaining up to Rs 750 crore. The draft proposal states that Rs 2,900 crore will be the investment in the BOT projects, by way of "infusion of debt". The valuation of the 10 road projects, mentioned in the draft proposal, is Rs 8,339.8 crore.
For any infrastructure company, InvIT will help in managing income-generating infrastructure assets by having long-term funds to unlock value in completed projects, or even to repay debt for any of the projects. On the other hand, it offers regular yield to the investors.
In December, the company had filed draft red herring prospectus with the market regulator but did not receive a nod for want of clarifications on certain issues.
Meanwhile, on Saturday, RInfra announced its annual results, wherein it reported 88% increase in consolidated net profit, from Rs 759.63 crore in FY16 to Rs 1,425.18 crore in FY17. Its consolidated net worth stood at Rs 23,348 crore. It has also announced a divided of Rs 9 per share.
In May, the company officials are expecting to get a nod from Central Electricity Regulatory Commission (CERC) to get the licence transferred to Adani Transmission. Both the companies had signed and executed share purchase agreement for the sale of 100% Western Region System Strengthening Scheme transmission assets and Parbati Koldam project.
As on FY17, RInfra's debt stands at Rs 16,500 crore. During this fiscal, the debt is expected to cut down to less than half.
Next month, the construction of Dassault Reliance Aerospace Limited's plant at Mihan, Nagpur, is likely to commence. The plant will come up at Dhirubhai Aerospace Park so that production of Rafale fighter jets could commence by December 2017.
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