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IL&FS plans to raise Rs.1,800 cr through infra investment trust

IL&FS plans to raise Rs.1,800 cr through infra investment trust


Infrastructure Leasing & Financial Services (IL&FS) is planning to raise ₹1,800 crore through the Infrastructure Investment Trust (InvIT) route. The money would be raised privately from Indian and foreign investors, said Vibhav Kapoor, Group CIO, IL&FS.

Private placement

Kapoor, in an interaction with BusinessLine, said the company is serious about raising the money and is almost on the verge of launching the fund. The fund will not be listed on the exchanges. All necessary regulatory formalities have been completed, he said.

He said in a couple of weeks marketing of the fund will commence. In India, insurance companies, mutual funds and HNIs could subscribe to the fund. In overseas markets, pension funds and wealth funds could invest in the InvITs.

Expanding power portfolio

Kapoor pointed out that the proceeds of the fund would be invested in four road projects. Of these, three projects are based on annuity, while one is toll-driven. The annuity projects have lesser risk as toll is not collected from motorists, he said.

Kapoor said the company was looking at additional investments in the power sector, especially in the renewable space. The Centre is identifying new wind farm sites across the country, of which the company would look at some for investment opportunities.

ILFS has 775 MW of installed capacity of wind power projects and another 228 MW is under construction. In the next three years, another 1,000 MW of capacity could be added by the company, he said.

He added the company has 1,300 MW of coal power plant operational in Cuddalore, Tamil Nadu. Land and infrastructure for expansion of capacity by another 2,500 MW are also present. Capacity expansion in phases is being considered.

Anand Gupta Editor - EQ Int'l Media Network


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