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India's first infrastructure investment trust IPO draws strong demand

MUMBAI (NewsRise) -- The $668 million initial public offering of IRB InvIT Fund, India's first-ever infrastructure investment trust, drew a reasonably strong demand from investors amid hopes of a boom in spending to improve the south Asian nation's roads, railways and ports.

The IPO, which was oversubscribed more than eight times, comes at a time when India is gearing up to spend a record $59 billion on infrastructure projects this year. The trust allows investors to benefit from rental yield and price appreciation of various infrastructure assets, without actually owning them. Investors may get returns in the form of regular dividends, interest or buyback of units.

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