POWERGRID InvIT IPO: Price band, Date of opening to Bid Lot, all details highlighted by Axis Capital

POWERGRID InvIT IPO: The POWERGRID Infrastructure Investment Trust (PGInvIT) was formed on September 14, 2020 by the sponsor, Power Grid Corporation of India Ltd. (“POWERGRID”) as an irrevocable trust. The Investment objectives of the Trust is to carry on the activities of and to make investments as an infrastructure investment trust as permissible in terms of the InvIT Regulations and the Trust Deed, says Axis Capital.

POWERGRID InvIT IPO: Details

Axis Capital says the POWERGRID InvIT IPO is of Units aggregating upto Rs 7,734.99 Cr (Fresh Issue of Units aggregating upto Rs 4,993.48 Cr and Offer for Sale of units upto Rs 2,741.51 Cr). The Price band of the issue is Rs 99 – Rs 100 per unit. The Bid Lot is 1,100 Units and in multiples thereof . POWERGRID InvIT IPO date of opening is Thursday, 29th Apr’2021 and closes on Monday, 3 rd May’2021. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/ Issue Opening date (i.e. on Wednesday, 28th Apr’2021).

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The Trust is an infrastructure investment trust established for making investments in special purpose vehicles as defined under Regulation 2(1)(zy) of the InvIT Regulations, or infrastructure projects or securities of Indian companies engaged in the infrastructure sector, as may be permitted in terms of Regulation 18(5) of the InvIT Regulations, highlights Axis Capital.

Their Sponsor, POWERGRID was conferred with ‘Maharatna’ status also acting in the capacity of their Project Manager, is a CPSE under the Ministry of Power, GoI. As of March 31, 2019, POWERGRID was the 3rd largest CPSE in terms of gross block as per the Public Enterprises Survey 2018-19. As of November 1, 2020, POWERGRID was the largest power transmission company in India in terms of length of transmission lines measured in circuit kilometres. As of August 31, 2020, POWERGRID’s share in India’s cumulative inter-regional power transfer capacity was more than 85%. q POWERGRID is carrying out O&M of the Initial Portfolio Assets (“IPA”) since their respective Commercial Operation Date (“COD”) and has entered into O&M agreements with the IPA POWERGRID, as Project Manager, has entered into Project Implementation and Management Agreement with PGInvIT, says Axis Capital.

As of December 31, 2020, their Sponsor owned the Sponsor Tariff based competitive bidding (“TBCB”) Projects. As of December 31, 2020, 8 of these Inter-state transmission system (“ISTS”) SPVs had commenced commercial operations, comprising 39 transmission lines (6,398 Circuit kilometres (“ckm”)), with a total power transformation capacity of 9,630 MegavoltAmpere (“MVA”). The remaining Sponsor TBCB Projects are at different stages of development, highlights Axis Capital.