Energy Infrastructure Trust , a prominent player in the infrastructure investment sector, is poised for a significant transformation as it moves towards becoming a public listed infrastructure investment trust (InvIT). This strategic shift, approved by the board of EnCap Investment Manager Private Limited, the trust's investment manager, marks a new chapter in the trust's journey and could potentially reshape its market presence.

Key Highlights of the Conversion Plan

• Public Offering: Energy Infrastructure Trust plans to offer up to 13,28,00,000 units through an offer for sale by its sponsor, Rapid Holdings 2 Pte. Ltd.
• Regulatory Compliance: The conversion process will be carried out in accordance with the Securities and Exchange Board of India (SEBI) InvIT Regulations and other applicable laws.
• Amendments to Key Documents: To facilitate the conversion, the board has approved amendments to the Indenture of Trust, Investment Management Agreement, and Distribution Policy.
• Unitholder Approval: An Extraordinary General Meeting (EGM) will be held to seek approval from unitholders for the proposed changes.

Implications and Next Steps

The conversion from a private to a public listed InvIT is a significant move that could enhance Energy Infrastructure Trust's market visibility and potentially broaden its investor base. However, this transition is subject to several conditions:

1. Approval from unitholders
2. Necessary regulatory approvals
3. Favorable market conditions
4. Compliance with SEBI InvIT Regulations

EnCap Investment Manager Private Limited, formerly known as Brookfield India Infrastructure Manager Private Limited, will continue to act as the investment manager for Energy Infrastructure Trust throughout this transition.

Market Impact

While the full impact of this conversion remains to be seen, it represents a notable development in the infrastructure investment trust landscape. The move could potentially increase liquidity for existing unitholders and provide new opportunities for public investors to participate in the infrastructure sector.

As the trust progresses with its conversion plans, market participants will likely keep a close eye on the upcoming EGM and subsequent regulatory approvals. The success of this conversion could set a precedent for other private listed InvITs considering similar transitions in the future.

Investors and market watchers are advised to stay informed about further updates as Energy Infrastructure Trust navigates this important transition in its corporate journey.

Energy Infrastructure Trust (EIT), a leading infrastructure investment trust in India's natural gas sector, has announced its financial results for the quarter ended June 30, along with plans to potentially convert to a public listed InvIT and explore a partial stake sale by its sponsor.

Q2 Financial Highlights

EIT reported quarterly revenue of INR 965.04 crore. The profit after tax stood at INR 31.59 crore, reflecting the trust's operational performance.

Valuation Update

As part of its quarterly review, EIT's board of directors approved a valuation report assessing the trust's enterprise value. According to the report, EIT's enterprise value was determined to be INR 123,130.00 million as of June 30.

Potential Conversion to Public Listed InvIT

The board has approved exploring the option of converting Energy Infrastructure Trust from a private listed infrastructure investment trust to a public listed InvIT. This conversion would be executed through a public offering, subject to unitholder approval and necessary regulatory clearances.

Sponsor's Stake Sale Consideration

The board noted that the sponsor, Rapid Holdings 2 Pte. Ltd., is considering the possibility of selling a portion of its 75% unitholding in EIT. This potential sale would be subject to favorable market conditions and regulatory approvals.

Industry Context

EIT's financial performance and strategic initiatives come at a time when India's natural gas sector is experiencing significant growth. The government's push to increase the share of natural gas in the country's energy mix has created a favorable environment for infrastructure investments in this sector.

Looking Ahead

As Energy Infrastructure Trust explores the possibility of becoming a public listed InvIT and considers changes in its unitholder structure, investors and industry observers will be keenly watching for further developments. The trust's financial performance, coupled with these strategic initiatives, suggests a promising outlook for EIT in the evolving landscape of India's natural gas sector.

The coming months will be crucial as EIT works towards obtaining necessary approvals and gauging market conditions for its proposed public listing and potential sponsor stake sale. These moves could potentially reshape the trust's future and its role in India's growing natural gas infrastructure.