Revised Pricing Methodology for Institutional Placements of Privately Placed Infrastructure Investment Trust (InvIT)
Summary
This circular revises the pricing methodology for institutional placements of privately placed Infrastructure Investment Trusts (InvITs). It mandates that such placements must occur at a price not less than the Net Asset Value (NAV) per unit. Consequently, the previous market-based pricing guidelines are retained only for publicly listed InvITs.
Text
Regulation 14(4) of the SEBI (Infrastructure Investment Trusts) Regulations, 2014 provides that any subsequent issue of units after initial public offer may be by way of institutional placement.
Floor price for institutional placement for privately placed InvITs shall be NAV per unit of such InvIT.
The institutional placement by public InvIT shall be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class quoted on the stock exchange during the two weeks preceding the relevant date.
The institutional placement by privately placed InvIT shall be made at a price not less than the NAV per unit, based on the full valuation of all existing InvIT assets conducted in terms of InvIT Regulations.
This circular shall be applicable with immediate effect.
This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 33 of the InvIT Regulations.
Source: SecMarx — Revised Pricing Methodology for Institutional Placements of Privately Placed Infrastructure Investment Trust (InvIT). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.