The issue from IRB INVIT received excellent response on expected lines and finally even bettered expectations and was oversubscribed 8.57 times. It garnered support in the QIB category of 10.81 times and in the non QIB category of 5.89 times. The total response saw Rs 24,000 crs being raised. This is the first of its kind product and it took a long time in coming. It finally saw the day of light after various government bodies including the Finance Ministry, NHAI, SEBI and the ministry of roads came together.

The instrument is a hybrid instrument and is a combination of interest and dividend. The holder of units would get both streams of income with the interest component being higher at beginning and then reducing. The company is expected to distribute 90% of income to unit holders twice a year as per SEBI rules. However IRB plans to do it four times a year. This would ensure a steady flow of income to unit holders.

While the application was for 10,000 units, the trading lot would be 5,000. The returns as calculated by the company talk about 12.4% for institutional investors they talk about 10% for non-institutional investors. Even considering the tax to be paid on the interest component this would be better than the FMP products in the market and also the tax free bonds.

While this is the first product to hit the market many more are expected in coming days and months from the transmission sector, real estate sector and commercial space owners.

Great start to a great product.