SEBI on July 05, 2023 has issued amendments to guidelines for preferential issue and institutional placement of units by a listed InvITs. The amended guidelines provides that the institutional placement shall be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class quoted on the stock exchange during the two weeks preceding the relevant date.
The InvIT may offer a discount of not more than five percent on the price so calculated, subject to approval of unitholders through a resolution. “Relevant date” for the purpose of clauses related to institutional placement shall be the date of the meeting in which the board of directors of the manager decides to open the issue.
