Latest news with #SPVs
Entrepreneur
20 hours ago
- Business
- Entrepreneur
How Tokenization Is Reshaping the Future of Investing
Tokenization is a growing trend in the industry. Here's why it will only reach its potential through utility, not hype. Opinions expressed by Entrepreneur contributors are their own. My investment journey started over 10 years ago. Having invested in over 200 companies since then, I couldn't help but realize the need for a better infrastructure to close my deals. I'd set up a lot of SPVs and tools, and I invested in other providers building tools for investors and fund managers, but I needed fast, efficient and customized platforms. However, the platforms I was looking for did not yet exist, so I adapted by creating my own tools to facilitate a smoother investment experience. This was when I realized that the tools I had developed presented an opportunity that met a significant market demand, specifically in the area of tokenization. With a forecast to reach US$16 trillion by 2030, tokenized assets are tapping into a new generation of finance that extends beyond trading to include accessibility, compliance and more. From there, I found myself leading a venture that had tokenized over US$2 billion worth of assets for 20,000 investors across more than 1,500 funds. Related: The Tokenization Revolution: Reshaping How We Own and Trade Assets More to assets than just trading While the projected value of tokenized assets elicits much excitement, it's crucial to examine what tokenization entails from a utility standpoint, so as not to lose potential in the excitement. Understanding why assets belong on the blockchain needs to go beyond the view of "digital wrappers" that are idle in wallets. Tokenization must be viewed as a key to doors that were once inaccessible, providing opportunities that were once unrealistic. A good example of a door unlocked by tokenization is the tokenized stock exchange, a digital marketplace where traditional shares are converted into blockchain-based tokens. What this unveils is a quicker, more accessible and streamlined trading experience that transcends geographical borders and financial limitations. Tokenized stocks offer investors globally the opportunity to own a slice of U.S. technology leaders, including Apple, Amazon or even a private company like SpaceX, without the need for a U.S. brokerage account. Tokenization will also permit 24/7 trading of public stocks from anywhere in the world. For private stocks, it will unlock significant liquidity for pre-IPO companies, which until now were viewed as very illiquid investments. With geographical borders being removed, financial ceilings are also being lifted as high-priced assets are broken down into smaller units, bringing liquidity to markets that are typically difficult to trade. Take, for example, properties with multi-million-dollar value, and how fractional ownership can enable liquidity from retail investors. Related: Why Your Business Assets Belong on the Blockchain What about compliance? The promise of tokenization, valued at US$16 trillion, is achieved through steps that consider not only utility but also due diligence and precaution. The truth remains that this is a nascent technology with much regulatory ambiguity and global inconsistencies. While the U.S. views digital tokens as securities under the jurisdiction of the SEC, some countries in Asia have yet to develop detailed regulations governing these tokens. Countries are rushing to regulate the space, which drives even more adoption and safety to the industry. As an example, the U.S. Senate is looking to pass the Broker-Dealer Tokenization Act, a bill that would allow broker-dealers to operate in the tokenization space with a well-defined legal framework. This is where one of the most potent elements of tokenized securities comes into play: the ability to directly encode compliance and regulatory requirements into the asset using smart contracts. This embeds compliance in a manner that reduces regulatory overhead, while ensuring market integrity is sustained, and delivers an efficient use of real-world assets among developers and end-users. Exclusivity erodes through utility The norm thus far has been one of exclusive access to primary investment instruments; however, this exclusivity will soon erode due to the advent of tokenization. While we recently saw news about the Circle IPO and other high-ticket crypto projects, the story was yet another case of institutional investors being the early birds that get the worm, as each share was priced at US$31 pre-IPO, opened at US$69, and closed its first day at US$83.23. The arrival of tokenized equities, bonds and yield-bearing instruments is likely to cater to the appetite of both institutional and retail investors, with a lowered entry barrier, broadened access and a shift in opportunities for wealth creation. With tokenization gradually percolating the financial processes of today's economy, it would be no surprise to see the next game changer be access to early-stage gains, such as that of Circle's IPO. Related: How This Finance Guru Created A Breakthrough Financial Service Platform The next generation of finance Moving forward in a world that is growing increasingly tokenized, we're already noticing shifts in the likes of tokenized private credit, with platforms having pushed the volume of on-chain loans beyond US$13 billion in assets under management. This creates an inversion of the old mortgage model, where the token is liquid collateral tracked in real time and the borrower is priced by the pool. Invoices, revenue-share agreements and more can now be cleared in minutes on platforms that are monitored in real-time. The approach of constantly online collateral can also be seen in the corporate world, with tokenized U.S. treasures having reached US$7.2 billion. If this isn't enough, then JPMorgan's first public blockchain treasury trade most definitely provides clear proof of concept. These are some examples that demonstrate how tokenization can unlock the next generation of finance, tapping into the massive potential of this nascent space. The unicorns of tomorrow are those who see in this technology the opportunity to not just tokenize, but to enable the productivity of the assets tokenized in a manner accessible to all with transparency, compliance and security baked into its core.
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Business Standard
6 days ago
- Business
- Business Standard
Sarda Energy & Mineral shares gain 5% as arm receives power procurement nod
Sarda energy & mineral share price today: Shares of Sarda Energy and Minerals surged over 5 per cent, logging an intraday high of ₹467 on Friday, after the company's subsidiary firm, Chhattisgarh Hydro Power LLP, received an approval from the state power distribution company to procure power from the Rehar-1 small hydro power project. At 10:45 AM, Sarda Energy & Mineral shares were trading at ₹456.35, up by 3.36 per cent on the National Stock Exchange. In comparison, the Nifty50 was down by over 150 points or 0.61 per cent, quoting 25,198. So far this calendar year, shares of the Sarda group firm have plunged over 8 per cent. Power procurement deal As per the exchange filing, Chhattisgarh Hydro Power LLP was granted an in-principle approval for procuring power from 3x 8.3 megawatt (MW) Rehar-1 small hydro power project on a long-term basis. "The company has received in-principle approval from Chhattisgarh State Power Distribution Company Ltd. for procuring power from 3x 8.3 MW Rehar-1 small hydro power project on a long term basis; and has commenced commercial operation of Rehar-1 small hydro power project," the exchange filing read. The Chhattisgarh Hydro Power LLP was incorporated on May 24, 2005, as a private company and was later turned into an LLP on September 17, 2010. About Sarda energy & mineral The company, formerly known as Raipur Alloys and Steel Ltd., was established on June 23, 1976. The company was acquired by the Sarda Group in 1979 and renamed Raipur Alloys & Steel in 1985. In 2006, it was rebranded as Sarda Energy & Minerals Ltd. The company operates an integrated steel manufacturing unit with facilities for ferro alloys production, supported by a captive thermal power plant. The company also produces sponge iron for captive use, which is further processed into rolled products for commercial sale. In addition to its core steel business, Sarda Energy is also involved in the power sector, including hydropower projects executed via special Purpose Vehicles (SPVs).
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Business Standard
04-07-2025
- Business
- Business Standard
IRB InvIT to acquire 3 road assets worth ₹8,436 cr from IRB InvIT Fund
IRB InvIT Fund, the publicly listed infrastructure investment trust (InvIT) sponsored by IRB Infrastructure Developers, is set to acquire three road assets at an enterprise value of Rs 8,436 crore from IRB Infrastructure Trust, the sponsor's privately held InvIT. The unitholders of the public InvIT have given their approval to the proposed acquisition of the 100 per cent equity share capital of three special purpose vehicles (SPVs)—Kaithal Tollway Limited, IRB Hapur Moradabad Tollway Limited, and Kishangarh Gulabpura Tollway Limited—from the private InvIT, with a majority of 96 per cent. The transaction was first announced in May this year. The unitholders also approved a fundraise of up to Rs 5,000 crore to undertake the proposed acquisition and the appointment of the sponsor as the project manager of the InvIT to carry out the operations and maintenance (O&M) activities of the three SPVs. These SPVs operate certain stretches of road projects on a design, build, finance, operate and toll (DBFOT) basis and are located in the states of Rajasthan and Uttar Pradesh, spanning approximately 1,800 lane kilometres. The public InvIT and the private InvIT executed a binding term sheet on 30 May 2025 for the acquisition. The proposed acquisitions are subject to the necessary regulatory approvals and compliances and will increase IRB Infrastructure Developers' O&M order book by approximately Rs 3,100 crore. Earlier, in a conversation with Business Standard, an IRB executive had said that IRB Infrastructure Developers aims to unlock capital through an asset transfer strategy between its two InvITs—one private and one public—to bid for toll-operate-transfer (TOT) projects. IRB's private InvIT serves as the development platform for the IRB Group. 'The private InvIT will bid for assets, take on construction risk, and stabilise the asset. Once stabilised, the asset will be transferred to the public InvIT, which will generate a margin of 300 to 400 basis points, typically translating to two times price to book,' said Anil Yadav, director, investor relations, IRB Infrastructure Developers.
Business Upturn
04-07-2025
- Business
- Business Upturn
IRB Infrastructure unitholders approve Rs 8,436 crore acquisition of three DBFOT SPVs from company's private InvIT
IRB Infrastructure Developers Limited announced that the unitholders of its publicly listed infrastructure investment trust, IRB InvIT Fund, have approved the acquisition of three BOT (Build-Operate-Transfer) road project SPVs from IRB Infrastructure Trust, a private InvIT associated with the company. The three SPVs—IRB Hapur Moradabad Tollway Limited, Kaithal Tollway Limited, and Kishangarh Gulabpura Tollway Limited—are involved in DBFOT (Design, Build, Finance, Operate and Transfer) road projects. The transaction, based on a binding term sheet executed on May 30, 2025, carries an enterprise value of Rs 8,436 crore as of June 30, 2025. The acquisition was approved by approximately 96% of the unitholders of IRB InvIT Fund. Alongside this, the unitholders also approved a fund raise to support the acquisition and confirmed the appointment of the Sponsor as the project manager to handle operations and maintenance for the acquired assets. Virendra D. Mhaiskar, Chairman & Managing Director of the Sponsor stated, 'We are truly grateful to all the unitholders of the IRB InvIT Fund for demonstrating their strong trust and confidence in the Fund's growth strategy by passing the resolutions,' he added. 'We remain committed to enhancing unitholder value by actively exploring opportunities to add quality assets to the portfolio.' The proposed acquisition is expected to increase the Sponsor's O&M order book by approximately Rs 3,100 crore. Completion of the deal remains subject to regulatory approvals and compliance with applicable norms. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Time of India
02-07-2025
- Business
- Time of India
Telangana SPVs pay Rs 1,393 crore dues to REC
Mumbai: Rural Electrification Corp (REC) has clarified that the Telangana-based Kaleshwaram Irrigation Project Corporation ( KIPCL ) and Telangana State Water Resources Infrastructure Development Corporation ( TSWRIDC ) have paid their instalment amount of ₹1,393 crore to the company preventing them from slipping into a non-performing asset (NPA). The loans though are still classified as SMA 2 (special mention account 2) accounts. The two special purpose vehicles (SPV) were floated by the previous BRS government and together borrowed about ₹27,500 crore for taking up various irrigation projects including Kaleshwaram, Palamuru-Ranga Reddy, Sitarama, Devadula, Sriram Sagar flood flow canal and Kanthanapally irrigation projects. The two companies' total dues to REC from these SPVs were at ₹1,393.6 crore at the end of March 2025. In a letter to principal secretary Rahul Bojja, last week REC had said that unless payments are made by June end, the accounts could slip into NPA. In a notice to stock exchanges REC said the payments have been made within the timeline. "The respective utilities have cleared their critical over-dues and as on June 30, 2025, there are no critical dues of KIPCL and TSWRlDC. Further, both loans are secured and have been extended against State Government Guarantee. It is further to clarify that as on date, there are no loan assets which may tum into fresh NPA on account of outstanding dues," REC said. Live Events
