India Grid Trust’s InvIT IPO, sponsored by Sterlite Power Grid Ventures, bidding for which opened on BSE and NSE on Wednesday, has been subscribed 1.34 times at the cl3ose of bidding. Of their respective quota of reserved shares, institutional investors bid 1.14 times, while other investors bid 1.59 times. Against a total offering of around 12.63 crore shares, the total bids for subscription received on BSE and NSE were around 16.94 crore. This response by investors was far lesser than that received by IRB InvIT IPO, India’s first InvIT IPO. IRB’s InvIT IPO had been subscribed 8.57 times during its offer period of 3-8 May.
The price band of India Grid Trust’s InvIT IPO had been set at Rs 98-100 per unit and bids needed 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 this 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 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.
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Sterlite Power Grid Ventures Ltd 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. The company will use about Rs 1600 crore from the proceeds of the India Grid Trust’s InvIT IPO to pare its debt.
Sterlite Power Grid Ventures 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.