Bharat Highways InvIT files draft papers with Sebi to raise Rs 2,000 crore via IPO Infrastructure investment trust Bharat Highways InvIT has filed draft prospectus with the capital markets regulator Sebi to mop-up Rs 2,000 crore through an initial public offering (IPO). Proceeds of the issue will be used to repay certain loans obtained by the Project SPVs (special purpose vehicles) and for general corporate purposes, according to the draft red herring prospectus (DRHP). These SPV projects include Porbandar-Dwarka Expressway, Varanasi-Sangam Expressway, GR Sangli-Solapur Highway, GR Akkalkot-Solapur Highway, GR Phagwara Expressway and GR Gundugolanu-Devarapalli Highway. The issue will be made through the book building process wherein 75 per cent of the portion size will be available to institutional investors and the remaining 25 per cent to non-institutional investors. The sponsor to the issue, Lokesh Builders Pvt Ltd, part of the GR Group, will subscribe to 15 per cent of the total post-issue unit capital of the InvIT in order to comply with the sponsor lock-in requirements, post which the issue size will be reduced. The total income of the SPV Group for the financial years ended March 31, 2022, 2021 and 2020 was Rs 447.23 crore, Rs 160.01 crore, Rs 217.03 crore and Rs 309.27 crore, respectively. ICICI Securities, Axis Capital, HDFC Bank and IIFL Securities are the book running lead managers to the issue.
If the current trend continues for a longer period of time, not only oil mills but oilseeds growers will also not be able to get good rates of their produce, says Samir Shah, president of Gujarat State Edible Oils and Oil Seeds Association (GEOA). Shah who is also past president of SOMA says that due to various international factors rates of edible oils had gone up considerably, especially imported oils earlier this year.
“With a view to curb rising prices of edible oil, the Government of India reduced import duty on edible oils. Considering the fact that India is producing hardly 30 percent of its edible oil requirement, the decision was right at that point of time. Now when international prices of edible oils have gone down by 15 percent to 25 percent and high production period has started in edible oil exporting countries, the government should gradually increase import duty to protect local oil mills and oilseeds growers,” said Shah. GEOA has also made representation before Union Minister for Commerce & Consumer Affairs, Piyush Goyal to increase import duty.
In June import duty on edible oils was ranging from 35 to 55 percent, since then the government gradually reduced import duty and at present it is ranging from zero percent to 15 percent on different edible oils, he said.
Just a month back prices of edible oils were through the roof and the government took appropriate measures by reducing import duty in order to protect consumers, says Atul Chaturvedi, president of Solvent Extractors Association of India (SEA). “Prices of edible oils are coming down globally. Kharif sowing has already started across the country. In the interest of local farmers, it is high time to enhance import duty in a phased manner to encourage local edible oil value chain,” opined Chaturvedi.
On Thursday imported Palm oil prices were at around Rs 2100 per 15 kg as against local Rs 2700 and Rs 2550 of groundnut and cottonseed oils. Prices of other local oils including ricebran, coconut, soyabean and mustard remained as high as Rs 2350, Rs 2520, Rs 2500 and Rs 2580 respectively.
India imports around 13-13.5 million tonnes of edible oils, of which around 8-8.5 million tonnes (around 63 per cent) are palm oil. Though the price of other imported Sunflower oil remained at around Rs 2700 per 15 kg, but import quantity of the oil is much lower than that of palm oil.