PowerGrid Infrastructure Investment Trust (InvIT) will open its initial public offering (IPO) for subscription on Thursday, April 29. While this will be the first time a state-owned entity is monetising its infrastructure assets through the InvIT (infrastructure investment trust) route, it will also be the third InvIT to be listed on the Indian indices, after India Grid Trust and IRB InvIT went public in 2017.
The InvIT is sponsored by Maharatna PSU, Power Grid Corporation of India and the company plans to raise Rs 7,735 crore through its IPO. The new offer will comprise at least 10 percent of the outstanding units on a post-offer basis. The trust from its maiden issue will utilise the proceeds for providing loans to the Initial Portfolio Assets for repayment or pre-payment of debt, including any accumulated interest, availed by the Initial Portfolio Assets and also for general corporate purposes.
Here are five key things to know about PowerGrid InvIT IPO before subscribing to the offer:
IPO dates
The issue will open for bidding on April 29 and the last day for the offer is May 3, 2021. However, the bidding for the anchor book opened for a day on April 28.
Public offer
The offer constitutes a new issue of Rs 4,993.48 crore and an offer for sale (OFS) of Rs 2,741.51 crore by the selling unitholder. The issue has been reserved 75 percent for institutional investors of which 60 percent is reserved for anchor investors. While the remaining 25 percent for non-institutional investors on a proportionate basis.
Price band
Units of PowerGrid InvIT will be sold at a price band of Rs 99-100 per unit.
Bid lot size
With the exception to anchor investors, other investors can bid for a minimum of 1,100 units per lot and in multiples of 1,100 units.
Fund-raising
The company’s revenue from operations for the past nine months ended with December 2020 at Rs 992.3 crore, FY20 at Rs 1,324.3 crore, FY19 at Rs 977.16 crore and FY18 at Rs 343.57 crore. Profits in the corresponding periods stood at Rs 337.14 crore, Rs 378.8 crore, Rs 248.06 crore and Rs 114.13 crore, respectively.
According to moneycontrol.com report, ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets (India) are the lead managers to the issue. WhileIDBI Trusteeship Services is the Trustee and PowerGrid Unchahar Transmission is the investment manager.
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