IPO

Powergrid Infrastructure Investment Trust IPO

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Offer Details

The offer consists of fresh issue of ₹4,993 cr and Offer for Sale of units aggregating up to ₹2,742 cr. The proceeds from the fresh issue are proposed to be utilized for providing loans to IPAs for repayment of debt including any accrued interest, availed by the IPAs.

Powergrid Infrastructure Investment Trust IPO Subscription Details

Company

Powergrid Infrastructure Investment Trust

Issue Type

Book Building-InvITs

Issue Size (In ` Crore)

₹4993.48

Lot Size

1100 Equity shares

Open Date

29 April, 2021

Close Date

03 May, 2021

Offer Price

₹99 to ₹100 per equity share

DRHP

Click here

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About Powergrid Infrastructure Investment Trust IPO

The POWERGRID Infrastructure Investment Trust (PGInvIT), sponsored by Power Grid Corporation of India Ltd. (PGCIL), was set up with the objective to own, construct, operate, maintain and invest as an infrastructure investment trust. PGCIL is India’s largest power transmission company and is also the project manager for the trust. The Initial Portfolio Assets (IPA) consist of five projects with a total network of 11 power transmission lines of ~3,698.59 ckm and three substations having 6,630 MVA of aggregate transformation capacity, across five states in India. PGInvIT intends to distribute at least 90% of the net cash available for distribution.


Powergrid Infrastructure Investment Trust - Financial

Particulars

FY18

FY19

FY20

9MFY21

Revenue from Operations (₹cr)

344

977

1,324

992

EBITDA %

97.6

96.6

97.1

96.9

PAT (₹cr)

114

248

379

337

Net Debt

5,330

5,574

5,137

4,945

CF from operations (₹cr)

373

343

1,052

901

Source: Offer Document, 5paisa Research

POWERGRID Infrastructure Investment Trust - Key Points

  • Stable cash flow with long term visibility and low counterparty risk:
    PGInvIT derives revenues from transmission charges under long term Transmission Service Agreements (TSAs, fixed for 35 years from Scheduled COD) resulting in minimal price risk, stability, consistent cash flows and long term visibility. The average remaining term of the TSAs is 32 years and the useful life of the transmission assets can be extended up to 50 years with required renovation works. The annual availability of each IPA has been maintained in excess of 98% from respective COD which gives them incentive revenues as per respective TSAs. Payment securities in the form of letters of credit, a surcharge of 1.50% p.m. on the unpaid amount for late payments, regulation of power supply in the event of non-payment and lack of alternate power infrastructure which deters transmission customers from defaulting on payments lowers the counterparty risk.

  • Strong financial position; significant room to fund future acquisitions: 
    PGInvIT believes that its financial position will help in finance future expansion plans. PGInvIT has been given a provisional rating of AAA by ICRA and CRISIL and AAA by CARE. Following utilization of the Offer Proceeds, the consolidated borrowings and deferred payments net of cash and cash equivalents will be below 49% of the total value of their assets (permissible limit) which can be increased to 70%. PGInvIT believes that there are significant opportunities available for growth from monetization of other TCBC projects/subsidiaries of the sponsors through InvIT route. Other than the IPAs, the sponsor has two operational subsidiaries, seven subsidiaries in the construction phase, and four subsidiaries in intrastate power transmission that are also in the construction phase.

How to apply IPO on 5paisa app?

  • Applying for PowerGrid Infrastructure Investment Trust IPO using UPI method is not yet available.
  • To apply, log on to your Net-banking dashboard
  • Go to the IPO section
  • Go to the PowerGrid Infrastructure Investment Trust IPO and click Apply
  • Enter BO ID/DP ID
  • Enter your lot size and amount
  • Click on Submit to process your application

Powergrid Infrastructure Investment Trust IPO Frequently Asked Questions

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Contact Details of Powergrid Infrastructure Investment Trust IPO

Company Contact Information

Powergrid Infrastructure Investment Trust IPO
Plot No 2 Sector 29,
,
Gurgaon, Haryana 122001.

Phone: 91-124-282 3177
Email: investors@pginvit.in
Website: http://www.pginvit.in/

Powergrid Infrastructure Investment Trust IPO Register

KFin Techologies Pvt Ltd

Powergrid Infrastructure Investment Trust IPO Lead Manager(s)

  • Axis Capital Ltd
  • Edelweiss Financial Services Ltd
  • HSBC Securities & Capital Markets (India) Pvt Ltd
  • ICICI Securities Ltd

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