InvestorQ : Can you tell me about the Shrem INVIT IPO and when do they plan to hit the IPO market to raise funds?
Neelam Naik made post

Can you tell me about the Shrem INVIT IPO and when do they plan to hit the IPO market to raise funds?

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Anu Biswas answered.
3 months ago
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Shrem Group of Delhi has already filed for a Rs.600 crore initial public offering of its infrastructure investment trust INVIT. The promoters of the Shrem Group are the Chhatwal brothers who operates Fairmont hotels in India and also own a stake in Nanavati Hospital in Mumbai. It has also acquired a total of 24 road assets from Dilip Buildcon for a sum of Rs.1600 crore, which is currently parked in a trust.

It is expected to be a private placement of units and typically the private placement of an INVIT is akin to a qualified institutional placement of shares by a company. The investors are pre-decided even before the launch of the deal. In the case of retail investors, they can apply in larger units and it is more like a debt instrument with a greater degree of assured returns unless a REIT issue, which has more of an equity component.

The Indian arm of Fitch Ratings has assigned an AAA rating to a Rs.3,300 crore loan facility of Shrem’s InvIT. That means; these instruments are considered to have the highest degree of safety regarding timely servicing of financial obligations, including interest and principal repayments. They also carry the lowest level of credit risk.

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