PowerGrid InvIT’s Rs 7735 Cr IPO to Open at Rs 99-100/Unit Price Band

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The PowerGrid Infrastructure Investment Trust (InvIT) has fixed a price band of Rs 99-100 per unit for its Rs 7,735 crore initial share sale, which will open for public subscription on April 29, 2021. The issue will close on May 3, 2021, and the bidding for anchor investors will open on April 28, 2021, according to the company’s statement.

The 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. 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.

In March, we had reported that the Maharatna PSE had signed a Share Purchase Agreement with Jaiprakash Power Ventures Limited (JPVL) to acquire 74 percent stake in Jaypee Powergrid Limited-JV (JPL) in which PowerGrid already holds 26 percent equity. Making JPL a wholly-owned subsidiary of PowerGrid.

Earlier in the same month, the PSE had announced that pursuant to its selection as the successful bidder under tariff-based competitive bidding, it had on March 9, 2021, acquired Ramgarh New Transmission Limited (RNTL) from REC Power Distribution Company Limited.