The group promoted by the Chhatwal brothers operates Fairmont hotels in India and is a shareholder in Mumbai’s Nanavati Hospital. It acquired 24 road assets from Dilip Buildcon for Rs 1,600 crore four years ago and parked them in a trust.
The offering is a private placement of units of the trust, which will be listed on the National Stock Exchange. ICICI Securities is the manager of the offering.
Shrem Group did not respond to ET’s queries for comment on the matter.
A private placement of units of an InvIT is akin to a qualified institutional placement of shares of a company. The investors are decided before the launch of the deal. Retail investors can buy the units, which are usually of larger lot sizes, once the InvIT lists on the stock exchange.
Power Grid Corporation of India recently filed for an IPO of its InvIT, which is expected to raise $1.1 billion.
India Ratings, the local arm of Fitch Ratings, recently assigned a AAA rating to a Rs 3,300 crore loan facility of Shrem’s InvIT. Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk.
“The rating reflects a diversified pool of assets involving 10 state annuity plus toll projects, six state annuity projects and one state toll project, five National Highway Authority of India (NHAI; ‘IND AAA’/Stable) awarded hybrid annuity (HAM) projects, one Ministry of Road Transport and Highway (MoRTH) awarded HAM project and one NHAI awarded national highway toll project,” India Ratings said in a note on January 7.