NDR InvIT Trust likely to get SEBI nod for its fund raising plans by September-end

NDR InvIT Trust, which plans to raise Rs 1,100 crore through a private InvIT issue. is expected to receive Securities Exchange Board of India (SEBI) approval for its fundraising by end of current month i.e September. The company had filed the draft papers for the proposed fundraising with SEBI in July, 2023.

Under the proposed offer, slightly over Rs 843 crore will be raised through fresh issue (funds coming into the company) and approximately Rs 322 crore will be raised by NDR InvIT Trust, which is sponsored by NDR Warehousing Private Limited which has a strong lineage in the logistics sector.

The company recently secured a Rs 500 crore funding from Bahrain-based Investcorp. CARE Ratings has given NDR InvIT Trust an issuer rating of Provisional AAA, Stable.

The Rs 1,100 crore raised through the private InvIT will be used towards debt repayment and post the issue the company’s debt will come down to zero. Sources informed CNBC-TV18 that NDR InvIT Trust could also look to come out with a public InvIT in the next 2 years.

NDR InvIT Trust is pioneer in the warehousing industry with clients across sectors like FMCG, FMEG, automotive & industrial, E-commerce, telecom, consumer durables, having first mover advantage in cities like Bengaluru, Puducherry and Goa. The company has a pan India presence with a 16.91 million sq. ft. spread across 12 of India’s premier consumption and production cities. Promoters of the company have rich experience in working alongside the world's leading supranational development institutions, private equity funds and banks.

According to Indian Chamber Of Commerce, the logistics sector has been an important part of the Indian economy that supports the development of manufacturing and e-commerce. The sector is currently a frontrunner with a market size of $250 billion in FY21. It is projected to grow to $380 billion by 2025. The domestic logistics market is growing faster than the economy and is expected to maintain its CAGR of 10-12 percent in the coming years.

NDR InvIT Trust looks at becoming a significant player of this growth story. NDR InvIT Trust has an occupancy of 95.30 percent, committed occupancy of 77.20 percent and 12 years weighted average lease expiry (WALE) as of March 31, 2023. The company’s portfolio enjoys strong embedded growth prospects through a combination of contracted revenue, re-leasing, lease-up of vacant space and new construction within the Portfolio to accommodate tenant expansion.

NDR InvIT Trust expects total revenue from operations to grow organically by 41 percent between FY24 and FY26.

As per the latest reported numbers, NDR InvIT Trusts clocked Rs 170 crore as revenue from operations in FY22, a growth of 21 percent. As on December 2022, the company has made Rs 160 crore in revenue from operations. After turning profitable in FY21, NDR Investment Trust doubled its profitability in FY22 to almost Rs 22 crore. The profit figure as on December 2022 stood at Rs 21 crore.