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Stable, consistent cash flow of assets biggest incentive for InvIT investors: PowerGrid's K Sreekanth

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Power Grid InvIT, India’s first PSU infrastructure investment trust, got listed on Friday at a 4 percent premium to the issue price of Rs 100 a share. It is a large issuance of Rs 7,700 crore and will help PowerGrid Corporation in value unlocking and capex requirements. CNBC-TV18’s Nisha Poddar spoke with K Sreekanth, Chairman and MD of Power Grid and asked him about the value proposition for the shareholders of PowerGrid.

Power Grid InvIT, India’s first PSU infrastructure investment trust, got listed on Friday at a 4 percent premium to the issue price of Rs 100 a share. It is a large issuance of Rs 7,700 crore and will help PowerGrid Corporation in value unlocking and capex requirements.
CNBC-TV18’s Nisha Poddar spoke with K Sreekanth, Chairman and MD of Power Grid and asked him about the value proposition for the shareholders of PowerGrid.
“We see that the investors can expect fairly predictable and stable cash flows from the existing five assets and also there is a good growth potential going forward,” he said.
A large pipeline of Power Grid assets under development provides visibility on InvIT growth to the investors, he added.
PowerGrid InvIT is a first from any Maharatna PSU with five fully operation projects. The company has projected a cash flow of Rs 1,150 crore for three years in the InvIT.
“This is the platform we have created to monitor our assets and I don’t see the need for ROFR because the transactions will happen at an arm’s length basis. We are a listed entity, so we need to balance the interest of our shareholders,” Sreekanth said.
He added that the company would see significant additions to the assets in the next three-four years.
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