India Grid Trust on Tuesday made a tepid debut on the bourses. India Grid got listed on BSE at its issue price Rs 100. India Grid ended the session at Rs 98.45, 1.55% less than its issue price. The initial public offering (IPO) of India Grid Trust – an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures (SPGVL) – was on May 19 subscribed 1.35 times with investors bidding for 17.01 crore shares out of 12.62 crore shares on offer. The issue received bids for 7.84 crore shares from institutional investors of their quota of 6.88 crore shares. Non-institutional investors bid for 9.17 crore shares of their quota of 5.73 crore shares offered to them, bidding 1.6 times. India Grid Trust on May 16 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 constituted 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 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. 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. Earlier this month, 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. The other trusts belong to IRB Infrastructure, MEP Infrastructure, GMR Infrastructure, Reliance Infrastructure and IL&FS Transportation Networks.