Power Grid Infrastructure Investment Trust will open for public subscription on April 29 and has fixed a price band of Rs 99-100 per unit for its Rs 7,735 crore initial share sale.
According to the company’s statement on Monday, the issue will close on May 3 and the bidding for anchor investors will open on April 28.
Power Grid Infrastructure Investment (PowerGrid InvIT) is owned by state-run Power Grid Corporation of India. This will be the first Infrastructure Investment Trust (InvIT) in the country to be floated by a public sector company.
The initial public offer (IPO) comprises fresh issue of shares worth Rs 4,993.48 crore and offer for sale to the tune of Rs 2,741.50 crore by selling shareholders.
The PowerGrid InvIT units are proposed to be listed on National Stock Exchange and BSE.
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 proceeds from the offer will be utilised for providing loans to the initial portfolio assets for repayment or pre-payment of debt, including any accrued interest, and for general purposes.
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).
PowerGrid InvIT has been set-up to own, construct, operate, maintain and invest as an infrastructure investment trust as permissible in terms of the InvIT Regulations, including in power transmission assets in India.
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.
The regulator has extended various relaxations for listing of these trusts and such trusts are popular in some advanced markets.