Private Equity

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Canada's CDPQ to sell Rs.1,500-Cr stake in India InvIT to meet Sebi norm

Economic Times  

Caisse de depot et placement du Quebec (CDPQ), Canada's second largest pension fund, is set to bring a new investor into India Highway Concession Trust, its infrastructure investment trust (InvIT) in the country. CDPQ has hired Morgan Stanley to find a buyer for the minority stake, in order to fulfil the mandatory requirement for InvITs in India. CDPQ is likely to raise about USD 150-200 million (INR 1,000 -1,500 crore) by selling additional stake in the InvIT. The sale process is expected to be launched early next month. Investment manager Maple Infra Invit Investment Manager manages the assets of India Highway Concession Trust. At present, five investors together hold about 25% in India Highway Concession Trust. Though India Highway Concession Trust has already met the Sebi guideline of minimum stake dilution of 25%, the INR 6,300-crore TOT 7 acquisition has forced CDPQ to sell additional stake in the InvIT as the valuation has shot up.