POWERGRID InvIT makes decent debut

POWERGRID Infrastructure Investment Trust was trading at Rs 103.55 at 11:08 IST on the BSE, a premium of 3.55% over the initial public offer (IPO) price of Rs 100.

Units of the infrastructure investment trust were listed at Rs 104, at a premium of 4% to the initial public offer (IPO) price. So far, the units have hit a high of Rs 104.97 and low of Rs 103.40. On the BSE, 10.30 lakh units were traded on the counter so far.

The IPO of POWERGRID Infrastructure Investment Trust (PowerGrid InvIT) was subscribed 4.83 times. The issue opened for bidding on 29 April 2021 and it closed on 3 May 2021. The price band of the IPO was Rs 99-100.

The institutional investors category, comprising foreign institutional investors, domestic financial institutions, mutual funds, was subscribed 4.63 times. The other investors category, which includes corporates, individuals investors and others, was subscribed 5.07 times.

The IPO of units in PowerGrid InvIT consisted of a fresh issue of units aggregating upto Rs 4993.48 crore and an offer for sale of units aggregating upto Rs 2741.50 crore by Power Grid Corporation of India.

Ahead of its IPO, PowerGrid InvIT on 28 April 2021 raised Rs 3,480.74 crore by allocating 34,80,74,100 units to anchor investors at Rs 100 per unit, the upper end of the IPO price band.

The proceeds from the fresh issue will be utilised for 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.

PowerGrid InvIT is owned by state-owned PowerGrid Corporation of India. This will be the first Infrastructure Investment Trust (InvIT) in the country to be floated by a public sector company.

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.

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

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