IPO fever: InvIT sees stock-like listing gain

Mumbai: Anantam Highways Trust, an infrastructure investment trust (InvIT) that listed on the bourses on Thursday, saw unusual debut-day trading. Some investors bought the units of the at Rs 114 on BSE and Rs 113 on the NSE, an appreciation of 13-14% over its IPO price.

Here’s why that is odd: Unlike shares, InvIT units are considered for investment purposes and a return (yield) of 13-14% means a return of more than double the one-year bank FD rates in just a week’s time.

Market players said the unusual buying price and the return could be due to the current IPO frenzy when some investors confused the InvIT units as stocks and unknowingly pushed up prices of the instrument.

Issued at Rs 100 per unit in the recently closed IPO, the units of Anantam InvITs were listed at Rs 103, a decent listing for a debt instrument. After the unusual spike, the units closed the session at Rs 105, a good listing-day gain, market players said.

The trust issued units worth Rs 400 crore in the IPO, at a price band of Rs 98-100 per unit. Some of the top mutual funds, insurers, family offices and wealth management firms had come in the anchor round.

On the first day, on NSE, 8.8 lakh units were traded while on the BSE, 72 lakh units were traded, exchange data showed. The InvIT had a market cap of close to Rs 2,300 crore, according to NSE data.

Mumbai: Anantam Highways Trust, an infrastructure investment trust (InvIT) that listed on the bourses on Thursday, saw unusual debut-day trading. Some investors bought the units of the InvIT at Rs 114 on BSE and Rs 113 on the NSE, an appreciation of 13-14% over its IPO price.

Here’s why that is odd: Unlike shares, InvIT units are considered debt instruments for investment purposes and a return (yield) of 13-14% means a return of more than double the one-year bank FD rates in just a week’s time.

Market players said the unusual buying price and the return could be due to the current IPO frenzy when some investors confused the InvIT units as stocks and unknowingly pushed up prices of the instrument.

Issued at Rs 100 per unit in the recently closed IPO, the units of Anantam InvITs were listed at Rs 103, a decent listing for a debt instrument. After the unusual spike, the units closed the session at Rs 105, a good listing-day gain, market players said.

The trust issued units worth Rs 400 crore in the IPO, at a price band of Rs 98-100 per unit. Some of the top mutual funds, insurers, family offices and wealth management firms had come in the anchor round.

On the first day, on NSE, 8.8 lakh units were traded while on the BSE, 72 lakh units were traded, exchange data showed. The InvIT had a market cap of close to Rs 2,300 crore, according to NSE data.