PowerGrid Infrastructure Investment Trust is set to reportedly launch its initial public offering (IPO) by April end. This will be the first time a state-owned entity is monetising its infrastructure assets through the InvIT route. Shares of PowerGrid also jumped 4.5 percent to its day's high of Rs 212.90 per share on the BSE post the reports.
Reports also stated that the National Highway Authority of India (NHAI) is another state-owned firm that is exploring an InvIT IPO to raise around Rs 5,000 crore.
These come on the back of the large divestment target of Rs 1.75 lakh crore for FY22.
The IPO will comprise of a fresh issue of up to Rs 4,993 crore and an offer for sale by the company worth Rs 3,000, taking the total size of the IPO around Rs 8,000 crore. The InvIT will initially comprise of 11 power transmission lines currently owned and operated by Power Grid.
This will also be only the third InvIT to be listed in the Indian markets, after IRB InvIT and India Grid Trust both of which went public in 2017.
An Infrastructure Investment Trust (InvITs) is a Collective Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as a return.
On January 27, 2021, the firm filed DRHP (draft red herring prospectus) with market regulator Sebi for the issue.
ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets India are the lead managers to the issue.