Brookfield will need a second OFS to meet Sebi’s norms

Asset manager Brookfield launched an Offer for Sale to sell a 10 percent stake in InvIT Data Infrastructure Trust, of which they are the sponsor. The trust (InvIT) mainly comprises telecom towers with Reliance Jio as the anchor tenant.

The OFS was subscribed only 82.44% on Wednesday. Against the 182.2 million units on offer, representing a 7% stake, the OFS received bids for 150.2 million units. At the floor price of Rs 155 per unit, Brookfield sold units worth Rs 2,331 crore, roughly a 6% stake.

Brookfield plans to launch a second OFS between August 25 and 31. And sell up to 130 million units representing a 5% stake in the proposed OFS.

BIF IV Jarvis India, a Brookfield entity and the sponsor of the InvIT, holds around 88% stake. BIF needs to bring it down to 75% to meet Sebi’s minimum public shareholding norms.

Backgrounder
The floor price for the same was set at Rs 155 per unit. Base size of the OFS is worth Rs 2,824 crore along with a greenshoe option of Rs 1,209 crore, taking the overall size of the OFS to Rs 4,033 crore.

Data Infrastructure Trust was set up by Reliance Industrial Investments & Holdings Ltd. in January 2019 as a private listed InvIT. In August 2020, BIF IV Jarvis India Pte. Ltd. – an entity backed by Brookfield became the sponsor to the InvIT by subscribing to 89.79 percent of the units post approval from the Department of Telecom.

Currently, Brookfield owns 88 percent of the units in the InvIT, while the remaining are held by the Government of Singapore, British Columbia Investments and other investors.

The bid lot for the Offer for Sale is of 2 lakh units or worth Rs 3.1 crore and in multiples thereof.

CT Bureau