Mumbai: Toll road firm MEP Infrastructure Developers plans to raise over Rs.1,200 crore from an infrastructure investment trust (InvIT), which it hopes to launch in the last quarter of this fiscal, a top company official said.
“We have already submitted our proposal for forming InvIT in March to the Securities and Exchange Board of India (Sebi) for its in-principle approval and we expect to get the clearance this month,” company’s vice-chairman and managing director Jayant Mhaiskar told PTI in Mumbai.
Once the in-principle approval is in place, the company will start the process for forming the InvIT, he said.
“We are hopeful of launching it before March 2017. InvITs will help us release our capital which is locked in the current on-going projects and the same came be redeployed over a period of time,” Mhaiskar said.
When asked how much was the company planning to raise through the model, he said, “The valuation cannot be disclosed at this stage and we will be able to give the number after the closure. But as a part of InvITs, 49% of the debt has to be reduced and to that extent we can raise funds. Our current debt stands at around Rs.3,000 crore.”
In 2014, capital market regulator Sebi allowed the launch of real estate investment trusts (REITs) and InvITs to get easier access to funds.
In April last year, the company launched its initial public offer to raise Rs.324 crore which was mainly utilised to repay its debt. MEP Infra, which is largely into two areas of business- toll collection and OMT (operate, maintenance and transfer), is also eyeing 15-20% increase in topline by 2018-19 fiscal, he said.
“Apart from the toll collection and the OMT (operate, maintain and transfer) businesses, we have, along with our Spanish joint venture partner Sanjose India Infrastructure and Construction ventured into the construction of roads under the hybrid annuity model. We hope this business will drive our growth in the years to come,” Mhaiskar said.
At present, its order book for the hybrid annuity project stands at around Rs.2,600 crore which is to be executed over the next 30 months.