POWERGRID InvIT IPO IPO Review 2021: The POWERGRID Infrastructure Investment Trust IPO opens on 29th April and closes on 3rd May 2021. In this article, we cover the POWERGRID InvIT IPO review and look into important IPO information and find out the possible prospects of the company.
Table of Contents
POWERGRID InvIT IPO Review – About the Company
POWERGRID InvIT is owned by the Powergrid Corporation of India. The Powergrid Corporation of India is another state undertaking owned by the Ministry of Power, Government of India, and is mainly into the transmission of power. Its subsidiary, the POWERGRID InvIT is an investment trust.
The company was set up to own, construct, operate, maintain and invest as an infrastructure investment trust, including in power transmission assets in India. An investment trust like POWERGRID InvIT enables institutional investors and individuals to invest in infrastructure projects. These projects are expected to create assets that provide cash flow over a period of time.
POWERGRID InvIT also intends to distribute 90% of the cash available for distribution to its holders every quarter making it an exciting stock for dividends.
The companies initial portfolio of assets is made up of five power transmission projects located across five states of India. They are as follows:
- PowerGrid. Warora Transmission Limited.
- Power Grid Vizag Transmission.
- PowerGrid Kala Amb Transmission Limited.
- Power Grid Parli Transmission Limited.
- PowerGrid Jabalpur Transmission Limited.
The trust had received a provisional AAA (Stable) credit rating from the ICRA. IDBI Trusteeship Services Ltd. is the trustee for the company. They monitor and ensure that the business and investments made are in line with the provisions of the InvIT Regulations.
The PowerGrid InvIT will be the third InvIT to opt for an IPO and respectively get listed. The previous two include IRB InvIT and IndiGrid Trust InvIT. If PowerGrid does list it will be the first government-owned InvIT to list on an exchange.
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POWERGRID InvIT IPO Review – Key IPO Information
The government-owned entity has appointed ICICI Securities, Axis Capital, Edelweiss Financial Services, and HSBC Securities and Capital Markets (India) are the lead managers to the issue.
KFintech Pvt. Ltd. has been appointed as the registrar to the issue.
| Particular | Details |
|---|---|
| IPO Size | ₹7,734.99 Cr |
| Fresh Issue | ₹4,993.48 Cr |
| Offer For Sale(OFS) | ₹2,741.51 Cr |
| Opening Date | Apr 29, 2021 |
| Closing Date | May 3, 2021 |
| Price Band | ₹99 to ₹100 per equity share |
| Lot Size | 1100 Shares |
| Minimum Lot | 1 |
| Maximum Lots | 1 |
| Listing Date | May 17, 2021 |
Purpose of the POWERGRID InvIT IPO
The proceeds from the IPO will be used for the following purposes;
- Repayment and Prepayment of Debt.
- Providing loans to its initial portfolio assets.
- Other general purposes.
Conclusion
The IPO opens on 29th April and closes on 3rd May 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of POWERGRID InvIT.
That’s all for this post. Do let us know what you think of the POWERGRID InvIT IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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