PowerGrid InvIT IPO expected to open next week
PowerGrid Infrastructure Investment Trust is expected to roll out its initial public offering at the end of April, two people familiar with the development revealed.
This marks the first time that a state-owned entity will be monetizing its infrastructure assets by the InvIT route. This will also be the third InvIT to be listed in the Indian markets, after IRB InvIT and India Grid Trust both of which went public in 2017.
The IPO will notice the InvIT raise to ₹4,995 crore by selling new units of the trust, while its sponsor Power Grid also intends to sell units worth up to Rs3,000 crore through the IPO, taking the total size of the share sale to nearly Rs8,000 crore.
The InvIT will initially comprise 11 power transmission lines that are currently owned and operated by Power Grid.
An infrastructure investment trust is a quasi debt instrument that offers investors a regular yield received from cash flows from operating infrastructure projects such as roads, transmission lines, or renewable energy projects. Publicly traded InvITs, like the one offered by Power Grid can also provide an equity upside to investors.
ICICI Securities, Axis Capital, Edelweiss Financial Services, and HSBC Securities and Capital Markets India are the lead managers to the issue.
Power Grid is not the sole state-owned entity that intends to raise funds through the InvIT route.
The state-owned National Highways Authority of India (NHAI) intends to mobilize nearly ₹10,000 crore this calendar year through an InvIT and other avenues.
If the IPO happens successfully, it could make PowerGrid the industry leader and present great growth opportunities.Shishir Gupta, Founder and CEO, StartupLanes
If you are an emerging startup and are looking for investors to raise funds, StartupLanes has its own angel network and investment banking services and is connected to angel investors and VCs in 15 countries that ensure that our member startups have easy access to external funds to scale up constantly.
You can subscribe to our daily posts by entering your e-mail on the right side of this page.
The right investment is key to beating inflation and growing your wealth. Do you wish to become an angel investor? Yes, I want to be an angel investor.
Are you a startup and facing challenges in your business? Do you want to grow your business? It is not as difficult as it sounds. Learn how to grow your business here- Yes, I want to grow my business.
For publishing an advertorial article about your company on our website, drop an email at firstname.lastname@example.org