The Securities and Exchange Board of India (SEBI) on February 08, 2024, issued a notification regarding the Revised Pricing Methodology for Institutional Placements of Privately Placed Infrastructure Investment Trust (InvIT).
Based on the industry's request regarding pricing for institutional placement by privately placed InvIT, the recommendation of the Hybrid Securities Advisory Committee (HySAC), and to promote Ease of Doing Business, the guidelines for pricing of institutional placements InvITs have been reviewed. Based on the said review, it has been decided that the floor price for institutional placement for privately placed InvITs shall be NAV per unit of such InvIT.
Accordingly, the pricing for listed InvITs stand modified so that privately placed InvITs can undertake institutional placement based on the NAV of the assets of the InvIT:
•Paragraph 7.9.1 of the SEBI Master Circular for InvITs dated July 06, 2023, is modified as given below: “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 public InvIT may offer a discount of not more than five per cent on the price so calculated, subject to the approval of unitholders through a resolution as specified in para 7.2.1. Explanation: “relevant date” for clauses related to institutional placement shall be the date of the meeting in which the board of directors of the investment manager decides to open the issue.”
•Insertion of Paragraph 7.9.2 to the SEBI Master Circular for InvITs dated July 06, 2023: “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.
[Notification No. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2024/10]
