PowerGrid Infrastructure Investment Trust IPO opens today; price band at Rs 99-100

The PowerGrid Infrastructure Investment Trust (InvIT) initial public offering (IPO) of Rs 7,735 crore is going to be opened today on Thursday, 29 April, and will close on Monday, 3 May. The Rs 7,735 crore IPO consists of fresh issues worth Rs 4,993.48 crore and an offer for sale (OFS) of Rs 2,741.51 crore. The price band of the InvIT IPO is Rs 99-100.

Most experts suggest that investors should subscribe to this issue. As per the experts, the InvIT IPO can give investors consistent yields. Analysts at GEPL Capital have said that a pre-tax yield of 9 to 11 percent can be expected by the investors. This is based on the usage of funds in order to repay the SPV level debt. Analysts at GEPL Capital have assigned a subscribe rating to the InvIT IPO.

Edelweiss Financial Services, ICICI Securities, Axis Capital, and HSBC Securities and Capital Markets (India) are the lead managers of the InvIT IPO.

Institutional investors have a quota of 75 percent in the InvIT IPO out of which anchors investors have a quota of 60 percent. The remaining 25 percent is being offered to non-institutional investors on a proportional basis. All investors apart from anchor investors can bid on a minimum of 1,100 units. Investors can only bid in the multiple of 1,100 for InvIT IPO.

The funds raised from InvIT IPO will be used for repayment/pre-payment of debt. It will also be utilised for general corporate purposes.