Reliance Retail Files InvIT Proposal With SEBI, Aims To Raise INR 3048 Crore As per the document, Reliance Retail is planning to hold a minimum of 25% units of the trust, and the rest will be given away to incoming investors

Reliance Retail Ventures Ltd., the retail arm of Reliance Industries Ltd., is planning to raise INR 3,048 crore through the infrastructure investment trust of its warehousing and logistics assets on a private placement basis, as per draft documents filed with the Securities and Exchange Board of India. The trust will store the warehouse assets that the group intends to monetise.

With an intend to monetise its warehouse assets, the Mukesh Ambani-led conglomerate has set up the Infrastructure Investment Trust under the name of Intelligent Supply Chain Infrastructure Trust. As per the document, Reliance Retail is planning to hold a minimum of 25% units of the trust, and the rest will be given away to incoming investors.

Upon the allotment of the units, the trust intends to utilise the issue proceeds towards the acquisition of equity shares of the warehouse special purpose vehicle and provide a loan of INR 2,928 crore to the SPV towards acquisition of the logistics assets. The initial proposal is to acquire warehouse space of 12.77 million square feet and related logistics infrastructure for a consideration of INR 4,261 crore.

According to media reports, the portfolio of assets will comprise 64 warehouses in key warehousing markets, such as Delhi NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, Pune, and Hyderabad. The warehouses will have an area of more than 100,000 square foot and an investment of more than INR 25 crore per unit.

Reliance Retail is the sponsor of the InvIT and Axis Trustee Services Ltd. is the trustee. Infinite India Investment Management Ltd. has been appointed as the Investment Manager, and Jio Infrastructure Management Services Ltd. has been appointed as the Project Manager to the Trust.