Reliance to raise Rs 30.48 billion via warehouse InvIT

Reliance Retail Ventures Limited is looking to raise Rs 30.48 billion via an infrastructure investment trust (InvIT) of its warehousing and logistics infrastructure assets. Reliance Retail will hold a minimum of 25 per cent units of the trust and balance will be sold to incoming investors. Of the total issue proceeds, around Rs 1 billion will be used for acquiring equity shares of a special purpose vehicle (SPV) created to hold the warehousing assets, while a sum of Rs 29.28 billion will be used to provide a loan to the SPV for acquisition of the warehousing and related logistics assets.
The initial proposal is to acquire warehouse space of 12.77 million square feet and related logistics infrastructure for a consideration of Rs 42.61 billion. Additionally, the trust has also entered into a lending agreement with Sikka Ports and Terminals Limited to avail a rupee term loan of Rs 21.22 billion, which will also be utilised towards acquisition of the warehousing assets.