Power Grid InvIT IPO

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Power Grid InvIt is set to raise Rs 4995 crore through IPO by selling new units of the Trust. The IPO also includes an offer for sale of Rs 3000 crore. The offer opens on 29th April 2021 and closes on 3rd May 2021.

Power Grid InvIT IPO is the third InvIT IPO to be listed in the Indian Markets after IRB InvIT and India Grid Trust, both IPO raised in the year 2017. Offer Details of the IPO follows

Offer Details
Offer Size Rs 7993.48 crore
of which
Fresh Issue Rs 4993.48 crore
Offer for Sale Rs 3000 crore
Price Band Rs 99-Rs 100 per unit
Offer Period Apr 29 2021- May 3 2021
Offer Structure NIIs: upto 25% of the offer
Market Lot Minimum bid (1100 units) ; Rs 1,08,900-Rs 1,10,000
Listing on BSE, NSE
BRLM’s ICICI Securities, Edelweiss, Axis Capital, HSBC Securities
Registrar Kfintech

Objects of Power Grid InvIT IPO

  • Providing loans to the Initial Portfolio Assets for repayment or pre-payment of debt, including
    any accrued interest, availed by the Initial Portfolio Assets
  • General Purposes

Important Dates of Power Grid InvIT IPO

Power Grid InvIT IPO Key Dates
Basis of Allotment May 10, 2021
Refunds May 11, 2021
Credit to Demat Account May 11, 2021
Listing Date May 17, 2021

What is Infrastructure Investment Trust (InvIT)?

An Infrastructure Investment Trust (InvITs) is an Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

InvITs are set up to promote the infrastructure sector of India by encouraging  individuals to invest in it and can be modified according to a given situation. Typically, this type of a structure pools money from several investors to be invested in income-generating assets. The cash flow thus generated is distributed among investors as dividend income.

About Power Grid InvIT

Power Grid InvIT is set-up to own, construct, operate, maintain and invest as an infrastructure investment trust as permissible in terms of the InvIT Regulations, including power transmission assets in India. The InvIT is registered with SEBI as on January 7, 2021. Power Grid Corporation of India Limited is the sponsor of InvIT.

The Sponsor is engaged in project planning, designing, financing, constructing, operating, and maintaining power transmission projects across India and undertakes operations in the Indian telecom infrastructure sector. As of December 31, 2020, the Sponsor also provides transmission and distribution consultancy services in India and other jurisdictions, with footprints in 21 countries (including India).

Powergrid Unchahar Transmission Limited, a wholly-owned subsidiary of Power Grid is the investment manager of the InvIT. The investment manager is responsible for managing the InvIT, the Initial Portfolio Assets as well as undertaking investment decisions relating to the assets like future acquisitions, divestment, or enhancement of assets.

Investment Manager has been engaged in the power transmission business since Fiscal 2014 and has relevant infrastructure sub-sector experience owing to its involvement in the construction and operation of a transmission system.

The InvIt has a credit rating of Provisional [ICRA] AAA (Stable), CARE AAA (Is); Stable and Provisional CCR AAA/Stable by ICRA Limited, CARE Ratings Limited and CRISIL Ratings Limited, respectively.

Power Grid InvIT IPO Subscription Status

Power Grid InvIT IPO Subscription Status {no. of times (x)}
Particulars Shares Offered 29th Apr 30th Apr  3rd May
QIB 23,20, 49,400 0.03 0.38  4.63
NII 19,33,75, 600 0.06 0.88  5.06
Total 42,54,25,000 0.04 0.60  4.83

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About CA Priyanka Choudhary Jain 76 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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