Power Grid InvIT IPO, first-ever by govt-owned company, likely to be launched on April 29
Power Grid infrastructure investment trust (InvIT) IPO is likely to be launched on April 29, according to reports
PowerGrid InvIT IPO, first-ever by govt-owned company, likely to be launched on April 29 | Photo Credit: PTI
New Delhi: Power Grid Corporation of India (PowerGrid), the government-owned electric transmission company, is set to launch InvIT (infrastructure investment trust) initial public offering (IPO) on April 29. This is the first time that a state-owned company will go public through InvIT option and only the third after IRB and India Grid Trust.
An InvIT is a collective investment scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. The InvIT is designed as a tiered structure with the Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).
According to reports, the IPO size is likely to be Rs 7,700-8,000 crore in which InvIT is likely to raise Rs 4,995 crore by selling new shares of the trust and a secondary sale of upto Rs 3,000 crore. The price band of the IPO is likely to be announced by April 29.
The InvIT will reportedly comprise of 11 power transmission lines owned and operated by PowerGrid.
RELATED NEWS
ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets India are the lead managers to the issue.
PowerGrid is a public limited company incorporated on October 23, 1989. As of December 31, 2020, the government of India held 51.34% of the shares of the company, with the remaining being held by public shareholders including mutual funds, financial institutions, insurance companies and foreign institutional investors.
Get all latest Business News, Market News , Income Tax News, Share Market, Sensex Today live updates on Times Now