The initial public offering (IPO) of India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures (SPGVL), was subscribed by 0.16 times on Thursday, the second day of its offer, with investors bidding for 2.06 crore shares of 12.62 crore shares on offer. The issue received bids for 56.08 lakh shares from institutional investors of their quota of 6.88 crore shares. Non-institutional investors bid for 1.50 crore shares of their quota of 5.73 crore shares offered to them, bidding 0.26 times.
This is the second IPO by an InvIT after IRB InvIT Fund. On Tuesday, India Grid Trust raised `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 2,650 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 — Bhopal Dhule Transmission Project and Jabalpur Transmission Project — currently housed under the trust.
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 trust sponsor SPGVL were worth Rs 6,627.24 crore for the year ended March 31, 2016, against Rs 5,405.45 crore in the previous fiscal.
Morgan Stanley India, Citigroup Global Markets, and Edelweiss Financial Services are the lead managers of the issue. India Grid Trust is among the six trusts that seek to list an InvIT after the Sebi released final guidelines for public issue of units of InvITs in May 2016. The other trusts belong to IRB Infrastructure, MEP Infrastructure, GMR Infrastructure, Reliance Infrastructure and IL&FS Transportation Networks.