PowerGrid Infrastructure investment company (InvIT) shares made a debut at Rs 104 per share, up 4 percent from the difficulty price of Rs 100 per unit. PowerGrid InvIT had a market capitalisation of Rs 9,463.99 crore on the listing. PGInvIT shares ended at Rs 103, up 3 percent from IPO price. This was the primary Infrastructure investment company (InvIT) within the country to be floated by a public sector company. PowerGrid InvIT issue was subscribed 4.83 times on the Judgment Day of the subscription. The Rs 7,735-crore issue received bids for 205 crore units against 42 crore units on offer. Upon listing, PowerGrid Infrastructure investment company has become the third InvIT to be listed on the bourses after IndiaGrid Trust and IRB InvIT.
The issue comprised a fresh issue of shares worth Rs 4,993.48 crore and a suggestion purchasable (OFS) to the tune of Rs 2,741.50 crore by selling shareholders. The portion reserved for the institutional investors saw a subscription of 4.63 times and other investors 5.07 times. PowerGrid Infrastructure investment company (PowerGrid InvIT) is owned by the state-owned PowerGrid Corporation of India.
PowerGrid Infrastructure Investment Trust’s sponsor, power system Corporation of India (PGCIL) was conferred with ‘Navratna’ status in 2008 and later upgraded to ‘Maharatna’ in 2019. it’s the third-largest CPSE in terms of gross block and largest in terms of transmission lines length (ckms) having over 85 percent market share in India’s cumulative inter-regional power transfer capacity. Many analysts feel that a Government-backed sponsor like PGCIL instills confidence. PG InvIT is AAA rated and at the difficulty price of Rs 100 per unit, offers a 12 percent yield, trading at a selection of 600 bps to the ten years G-sec (6.0%).
Those at Prabhudas Lilladher gave a ‘subscribe’ rating to the difficulty. They said that rating to the IPO has been given on the idea of competitive advantage of its sponsors, consistent and stable income, strategic and important nature of power transmission business, and powerful financial positioning. PGInVIT is an infrastructure investment company (InvIT) established to have, construct, operate, maintain and invest in power transmission assets.