The initial public offering (IPO) of India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Limited (SPGVL), was subscribed by 0.07 times on Wednesday, the first day of the offer. The initial share sale offer received bids for 84,19,950 shares, as compared to the total issue size of 12,62,78,838 shares, as per NSE’s data. The issue received bids for 20.46 lakh shares from institutional investors of their quota of 6.88 crore shares. Non-institutional investors bid for 63.73 lakh shares of their quota of 5.73 crore shares offered to them, bidding 0.11 times.
This is the second IPO by an InvIT after IRB InvIT Fund. The IPO of IRB InvIT Fund was subscribed by more than 8 times earlier this month. On Tuesday, India Grid Trust raised Rs 1,012.43 crore from 19 anchor investors. The investors who acquired shares through anchor allotment include Deutsche Global, Kotak Mahindra, DSP Blackrock, Reliance Nippon, Reliance General Insurance, Edelweiss Tokio, BNP Paribas, UBS, Credit Suisse among others.
The issue constitutes 25% of the outstanding units of IndiGrid on a post-issue basis. India Grid trust was earlier looking to raise Rs 2650 crore but trimmed its issue size to Rs 2250 crore. More than 60% or Rs 1,600 crore will be used to repay the debt in the 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.