Brookfield's OFS in telecom tower InvIT undersubscribed
Brookfield's offer for sale (OFS) of units in its telecom tower InvIT Data Infrastructure Trust was subscribed only 82.44% on Wednesday, against a base size of ₹2,824 crore, showed BSE data. The infrastructure investment trust (InvIT) mainly comprises telecom towers with Reliance Jio as the anchor tenant. 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 ₹155 per unit, Brookfield sold units worth ₹2,331 crore, roughly a 6% stake. Secondary share sales like OFS do not have a minimum subscription requirement. Interestingly, Brookfield intended to sell a total of 10% stake in the InvIT through the OFS.
Apart from the base offer, Brookfield announced that it had the option to sell an additional 3% stake in case of oversubscription. Together, Brookfield planned to sell units worth ₹4,033 crore. In a stock exchange filing, Brookfield said it will launch a second OFS between August 25 and 31.
The firm plans to sell up to 130 million units representing a 5% stakein the proposed OFS. Whatever stake is left after the second OFS is likely to be sold off through a block deal, said a source aware of the developments. «There is demand from the same anchor investors for more stake, but OFS norms don't allow a single investor to subscribe to more than 25%.
The same anchor investors will come in the next tranche too. This was the first OFS by an InvIT, so garnering demand of ₹2,300 crore is a good outcome,» the source said. BIF IV Jarvis India, a Brookfield entity and the sponsor of the InvIT, holds around 88% stake.
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