The initial public offering (IPO) of India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Limited (SPGVL), to raise Rs 2,250 crore will have a price band of Rs 98-100. The issue is scheduled to open on May 17 and will close on May 19. Anchor investors will be allotted units on May 16. Bids can be made for a minimum of 10,205 units and multiples of 5,103 units thereof.
The issue constitutes 25% of the outstanding units of IndiGrid on a post-issue basis. India Grid trust was earlier looking to raise Rs 2,650 crore but trimmed its issue size to Rs 2,250 crore. More than 60%, or Rs 1,600 crore, will be used to repay the debt in two projects currently housed under the trust. The two projects are the Bhopal Dhule Transmission Project and Jabalpur Transmission Project. The remaining part of the proceeds will be used for general corporate purposes.
India Grid Trust was incorporated in October 2016 and owns inter-state power transmission assets. The total consolidated assets of SPGVL – the sponsor of the trust – were worth Rs 6,627.24 crore for the year ended March 31, 2016, against Rs 5,405.45 crore in the previous financial year. Morgan Stanley India, Citigroup Global Markets, and Edelweiss Financial Services are the lead managers of the issue.
Last week, the IPO of India’s first infrastructure investment trust (InvIT) from IRB Infrastructure Developers was subscribed 8.53 times. India Grid Trust is among the six trusts that seek to list an InvIT after market regulator Sebi released final guidelines for public issue of units of InvITs in May 2016.