PowerGrid InvIT IPO to open on April 29, price band set at Rs 99-100/unit

PowerGrid InvIT IPO: It’s raining IPOs (Initial Public Offers) this year and also jumping on the bandwagon is state-owned Power Grid Corporation of India’s infrastructure investment arm PowerGrid Infrastructure Investment Trust. The price band for its public offer has been fixed at Rs 99-100 per unit. 

The company will open its first offer for subscription on April 29 and will close on May 3, 2021. The anchor book will open for bidding for a day on April 28. It comprises a fresh issue of Rs 4,993.48 crore and an offer for sale of 2,741.51 crore by selling unitholders. 

PowerGrid InvIT would be the third such company listed on the exchanges after IRB InvIT and India Grid Trust. It owns and invests in power transmission assets in the country. Moreover, the rating agencies such as CARE Ratings, ICRA, CRISIL have termed PowerGrid InvIT as stable.  

Edelweiss mentions that investors, other than anchor investors, can bid for a minimum of 1,100 units and in multiple of 1,100 units thereafter. The PowerGrid InvIT units are proposed to be listed on the National Stock Exchange and Bombay Stock Exchange. 

The net proceeds from the fresh issue will be utilised for providing loans to the initial portfolio assets for repayment or pre-payment of debt, and general corporate purposes.  

The InvITs are instruments on the pattern of mutual funds and are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time. 

The trust's initial portfolio assets will have five assets -- PVTL (PowerGrid Vizag Transmission Ltd), PKATL (PowerGrid Kala Amb Transmission Ltd), PPTL (PowerGrid Parli Transmission Ltd), PWTL (PowerGrid Warora Transmission Ltd) and PJTL (PowerGrid Jabalpur Transmission Ltd). 

ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets (India) are the lead managers for the offer. 

While markets regulator Sebi first notified the regulations for InvITs and REITs (Real Estate Investment Trusts) in 2014, only a few such trusts have listed their units in the country so far.