Infrastructure Investment Trusts (InvITs) seem to be the flavour of the season. After IRB Infra’s successful IPO earlier this month, Sterlite Power Grid Ventures has become the first power sector company and the second infrastructure company to launch the initial public offering (IPO) of its InvIT. With plans to raise Rs 2,250 crore through the public offering, India Grid Trust’s InvIT opens for bidding today and will close on May 19.
The price band has been set at Rs 98-100 per unit and bids need to be made for a minimum of 10,206 units and in multiples of 5,103 units thereafter, which translates into a minimum investment of Rs 10,20,500 at the upper price band. The units of India Grid Trust’s InvIT are proposed to be listed on the BSE and the NSE. Morgan Stanley India, Citigroup Global Markets India and Edelweiss Financial Services are the lead managers to the issue.
The InvIT, sponsored by Sterlite Power Grid Ventures Ltd has already raised over Rs 1,012 crore from anchor investors by allotting 10.12 crore units on an average price of Rs 100 to 19 anchor investors for a sum of Rs 1,012.44 crore, as per a statement by the company. Among the anchor investors are Deutsche Global Infrastructure Fund, Credit Suisse (Singapore), Reliance Nippon Life Insurance Company, Copthall Mauritius Investment and Edelweiss Tokio Life Insurance Company.
Sterlite Power Grid Ventures Ltd, sponsor of India Grid Trust InvIT Fund is one of the leading independent power transmission companies operating in the private sector, with extensive experience in bidding, designing, financing, constructing and maintaining power transmission projects across India. Sterlite Power Grid Ventures will use about Rs 1600 crore from the proceeds of the India Grid Trust’s InvIT IPO to pare its debt.
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Company’s sponsor owns 11 inter-state power transmission projects with a total network of 30 power transmission lines of approximately 7,733 circuit kilometres (ckms) and nine substations having 13,890 megavolt amp (MVA) of transformation capacity. Some of these projects have been fully commissioned, while others are at different stages of development. Of the 11 inter-state power transmission projects owned by the sponsor, the trust will initially acquire two projects with a total network of eight power transmission lines of 1,936 ckms and two substations having 6,000 MVA of transformation capacity across four states.
India Grid Trust’s InvIT has been given the corporate credit rating of “AAA”/Stable by Crisil, “IrAAA”/Stable by ICRA and IND”AAA”/Stable by India Ratings and may offer investors an opportunity to directly participate in India’s power transmission and distribution theme.