 "PowerGrid to offer Rs 10,384 crore worth of assets in InvIT next week")
India’s largest power transmission company, state-owned Power Grid Corporation of India (PGCIL), will launch its Infrastructure Investment Trust (InvIT) on April 29 — a first for any government sector company.
After IndiGrid and IRB InvIT fund, this will be the third publicly listed InvIT for the country and the second in the power transmission sector.
The firm, in its regulatory filings with Sebi, said that its issue comprises Rs 4,994 crore of fresh issuance and an offer for sale, the amount of which was undisclosed.
“The selling unitholder will be entitled to the proceeds of the offer for sale and the proceeds received from the offer for sale will not form part of the offer proceeds. The Trust will not receive any proceeds from the Offer for Sale,” said the filing by PGCIL
The offer will close on May 3, 2020. PGCIL has offered five ‘initial portfolio assets’ at an enterprise value of Rs 10,384 crore for the proposed Power Grid InvIT (PGInvIT).
This is the first InVIT to be launched by a public sector company. The NHAI, which is another public sector company which has filed a draft prospectus for an InvIT is yet to announce a launch date.
The proceeds of the fresh issue in PGInvIT will be up to Rs 4993.5 crore and will be utilised – “providing loans to the Initial Portfolio Assets for repayment or pre-payment of debt, including any accrued interest, availed by the Initial Portfolio Assets; and general purposes,” said the filing by the company.
The Union Cabinet in September 2020 approved monetisation of assets of PGCIL through the InvIT model.
“This approval would help PGCIL to monetise in the first lot, assets with gross block value of more than Rs 7,000 crore. These assets, which are mainly High Voltage Transmission lines and substations, are held by PGCIL in the form of Special Purpose Vehicles (SPVs). The proceeds from the asset monetisation would be deployed by PGCIL in their new and under-construction projects,” it said.
The government statement said, in the first block, PGCIL would monetize assets with gross block of more than Rs 7,000 crore and based on the experience gained, further monetisation shall be carried out in future.
After IndiGrid and IRB InvIT fund, this will be the third publicly listed InvIT for the country and the second in the power transmission sector.
The firm, in its regulatory filings with Sebi, said that its issue comprises Rs 4,994 crore of fresh issuance and an offer for sale, the amount of which was undisclosed.
“The selling unitholder will be entitled to the proceeds of the offer for sale and the proceeds received from the offer for sale will not form part of the offer proceeds. The Trust will not receive any proceeds from the Offer for Sale,” said the filing by PGCIL
The offer will close on May 3, 2020. PGCIL has offered five ‘initial portfolio assets’ at an enterprise value of Rs 10,384 crore for the proposed Power Grid InvIT (PGInvIT).
This is the first InVIT to be launched by a public sector company. The NHAI, which is another public sector company which has filed a draft prospectus for an InvIT is yet to announce a launch date.
The proceeds of the fresh issue in PGInvIT will be up to Rs 4993.5 crore and will be utilised – “providing loans to the Initial Portfolio Assets for repayment or pre-payment of debt, including any accrued interest, availed by the Initial Portfolio Assets; and general purposes,” said the filing by the company.
The Union Cabinet in September 2020 approved monetisation of assets of PGCIL through the InvIT model.
“This approval would help PGCIL to monetise in the first lot, assets with gross block value of more than Rs 7,000 crore. These assets, which are mainly High Voltage Transmission lines and substations, are held by PGCIL in the form of Special Purpose Vehicles (SPVs). The proceeds from the asset monetisation would be deployed by PGCIL in their new and under-construction projects,” it said.
The government statement said, in the first block, PGCIL would monetize assets with gross block of more than Rs 7,000 crore and based on the experience gained, further monetisation shall be carried out in future.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%