MEP Infra unveils Rs. 2,500cr plan via InvITs

Close on the heels of its parent company announced its plans of fund raising via InvITs, MEP Infrastructure Developers has decided to generate Rs. 2,500-cr through Infrastructure Investment Trusts and is expected to file the draft red herring prospectus (DRHP) very shortly. With this announcement it will become the second firm to launch InvITs as it has debt of about Rs. 2,800-cr and the plan is to pare the debt using the proceeds of the InvITs.

The process of filing the DRHP with market regulator SEBI is in the final stages and it would be done in the next 30 days. The Mumbai-based firm has also shortlisted a couple of advisors - both Indian and foreign - for the InvITs, and finalisation would take place very shortly. InvITs, much like mutual funds, 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 (special purpose vehicles), while in case of public-private partnership projects, such investments can be made only through SPVs, said official sources.