Sterlite Power files papers to raise Rs 2,650 cr via InvIT

Sebi last month granted approval to Sterlite Power Grid Ventures to launch an InvIT, IndiGrid to raise money

Sterlite Power Grid Ventures has filed draft papers with market regulator Sebi to raise Rs 2,650 crore through infrastructure investment trust (InvIT).
 
InvIT offers an opportunity for promoters to sell their stake in completed projects to the trust, which in turn can raise long-term and tax-free funds from unit holders.
 
The Securities and Exchange Board of India (Sebi), last month, granted approval to Sterlite Power Grid Ventures to launch InvIT — IndiGrid — to raise money.
 

India Grid Trust, or IndiGrid, plans to issue units aggregating up to Rs 2,650 crore. The issue will constitute at least 25% of the outstanding units of IndiGrid on a post-issue basis, as per the draft papers.

 
Sterlite Power Grid Ventures and Sterlite Infraventures are the sponsor and investment manager of IndiGrid, respectively, while Axis Trustee Services is the trustee.
 
Proceeds from the listing of IndiGrid will be used to repay debt and for other general purposes.
 
The InvIT has been assigned corporate credit rating of AAA, which is a reflection of stability of cash flows of the two underlying operational transmission assets that IndiGrid proposes to acquire.
 
The issue is being managed by Morgan Stanley India Company, Citigroup Global Markets India and Edelweiss Financial Services. The units of IndiGrid are proposed to be listed on BSE and NSE.

 
With an aim to make InvITs attractive for capital raising, Sebi recently relaxed norms for the instrument.
 
Apart from Sterlite, Sebi has granted approvals to Reliance Infrastructure, IRB Infrastructure, GMR and MEP Infrastructure to launch trusts.