The Securities and Exchange Board of India on 9th February 2022 has published a framework for conversion of Private Listed infrastructure investment trust (InvIT) into a Public InvIT. A Private Listed InvIT may convert into a Public InvIT on making a public issue of units through a fresh issue and/or an offer for sale.
Units held by an existing unit holder of a Private Listed InvIT may be offered for sale in the public issue in accordance with Regulation 14(4)(v) of the InvIT Regulations.
Provided that such units shall be free from any encumbrance or lock-in on the date of filing of draft offer document.Provided further that unitholders, other than the sponsor(s), its related parties and its associates, who offer units towards the offer for sale shall not be eligible to participate in the public issue.
The Minimum sponsor(s) contribution for the public issue of units shall be either to the extent of 15% of the units issued through the public issue or to the extent of 15% of the post-issue capital.
Further the Units held by the sponsor(s) in excess of minimum sponsor(s) contribution, shall be locked-in for a period of one year from the date of listing of units allotted in the public issue.
Provided that if any units are already locked-in and the remaining lock-in period is more than one year, the units shall continue to be locked-in for such remaining Period.
The Maximum subscription from any investor other than sponsor(s), its related parties and its associates, in initial offer shall not be more than 25 percent of the total unit capital on post-issue basis.
