PowerGrid IPO set to open on April 29, price band set at Rs 99-100
PowerGrid Infrastructure Investment Trust (InvIT) announced the initial public offering (IPO) of units, set to open on 29 April 2021 at a price band of Rs 99 to Rs 100. The offer closes on 3 May 2021.
As stated by the company, the 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, PowerGrid InvIT is issuing units aggregating up to Rs 49,934.84 million and the selling unitholder is offering units aggregating up to Rs 27,415.08 million. The anchor investor bidding date is 28 April 2021.
The units of PowerGrid InvIT are proposed to be listed on BSE Limited and National Stock Exchange of India Limited (NSE). The trust has received in-principle approvals from BSE and NSE for listing of the units pursuant to letters dated 2 February 2021 and 3 February 2021, respectively. This offer will constitute at least 10% of the outstanding units on a post-Offer basis.
Bids can be made for a minimum lot of 1,100 units and in multiples of 1,100 units thereafter by bidders other than the units subscribed for by anchor investors.
PowerGrid said that the net proceeds from the offer will be utilised towards the following objects:
providing loans to the initial portfolio assets for repayment or pre-payment of debt, including any accrued interest, availed by the initial portfolio assets; and
- for general purposes.
This offer is being made through the book building process and in compliance with the InvIT regulations and the SEBI guidelines, wherein not more than 75% of the offer shall be available for allocation on a proportionate basis to institutional investors, provided that the investment manager and the selling unitholder may, in consultation with the lead managers, allocate up to 60% of the institutional investor portion to anchor investors on a discretionary basis in accordance with the InvIT regulations and the SEBI guidelines.
Further, not less than 25% of the offer shall be available for allocation on a proportionate basis to non-institutional investors, in accordance with the InvIT regulations and the SEBI guidelines, subject to valid bids being received at or above the offer price.
IDBI Trusteeship Services Limited is the trustee, while PowerGrid Corporation of India Limited is the sponsor. PowerGrid Unchahar Transmission Limited is the investment manager.
The lead managers to the offer are ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited and HSBC Securities and Capital Markets (India) Private Limited.