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Indian POWERGRID’s InvIT raises INR77 billion [free access]

May 14, 2021

Recently, India’s largest grid network developer, Power Grid Corporation of India (POWERGRID), launched its Infrastructure Investment Trust (InvIT)—PGlnvlT, making it the country’s first InvIT to be floated by a public sector power company. On April 29, 2021 the InvIT commenced its initial public offering (IPO), selling shares at INR100 per unit. The offer closed on May 3, 2021.


The InvIT IPO raised INR77.35 billion—comprising a fresh issue of up to INR49.93 billion and existing investors offering units worth up to INR27.41 billion. POWERGRID offered five initial portfolio assets at an enterprise value of INR103.84 billion, for the PGInvIT.


The initial share sale was made through the book-building process, up to three-fourths of which was allotted to institutional investors. Of this, 60 per cent was reserved for anchor investors. Not less than 25 per cent of the offer was allotted on a proportionate basis to non-institutional investors, subject to valid bids being received at or above the offer price.


The five portfolio assets include POWERGRID’s special purpose vehicles (SPVs)—POWERGRID Warora Transmission Limited (INR20.99 billion), POWERGRID Parli Transmission Limited (INR17.52 billion), POWERGRID Jabalpur Transmission Limited (INR14.90 billion), POWERGRID Vizag Transmission Limited (INR10.61 billion) and POWERGRID Kala Amb Transmission Limited (INR2.74 billion). The aforementioned projects would bring in a value of INR70 billion, allowing POWERGRID to utilise the proceeds in new and under-construction projects.


POWERGRID has also expressed plans to offer 18 under-construction projects (about INR225 billion investment) to the PGInvIT in future.