PowerGrid InvIT IPO Subscribed 1.59 times, non-institutional investors portion booked 2.08 times on final day


PowerGrid Infrastructure Investment Trust (PowerGrid InvIT)’s initial public offering (IPO) received good response. The public issue has been subscribed 1.59 times by the morning of May 3, the final day of bidding. The IPO consists of a fresh issue of Rs 4,994 crore and an offer for sale approximately to Rs 2,741.50 crore, opened for subscription on April 29.

According data available on exchanges show, the IPO received bids for 67.44 crore units against an offer size of 42.54 crore units. The report also cited that PowerGrid InvIT’s offer size has already been reduced after anchor bookings helped them raise Rs 3,480 crore against issuance of 34,80,74,100 units from anchor investors on April 28.

Meanwhile, the portion set aside for qualified institutional buyers also witnessed a subscription of 1.17 times, whereas the reserved portion of non-institutional investors was subscribed 2.08 times.

The public issue, which comprises a fresh issue of Rs 4,993.48 crore and an offer for sale of Rs 2,741.51 crore, opened for subscription on April 29.

The InvIT is sponsored by Maharatna PSU, Power Grid Corporation of India and the company’s shares are priced at Rs 99-100 per unit and investors can bid for a minimum of 1,100 units and in multiples of same units thereafter. The company is looking at raising Rs 7,735 crore and it aims to utilise the proceeds from the issue for providing loans to initial portfolio assets, repayment or pre-payment of debt and for general purposes among others.

PowerGrid Corporation of India is the owner of PowerGrid InvIT and this is the first ever infrastructure investment trust offering by a state-owned company in the country to monetise its infrastructure assets through the InvIT (infrastructure investment trust) way. It will also be the third InvIT to be listed Indian exchanges, after India Grid Trust and IRB InvIT went public in 2017.

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