India Grid Trust InvIT IPO (IndiGrid IPO)
IndiGrid was established on October 21, 2016 by its Sponsor, Sterlite Power Grid Ventures Limited (the “Sponsor”), registered in the Republic of India as an irrevocable trust under the Indian Trusts Act, 1882, and as an infrastructure investment trust under the InvIT Regulations, 2014, on November 28, 2016 having registration number IN/InvIT/16-17/0005. IndiGrid is established to own inter-state power transmission assets in India.
The Sponsor is one of the leading independent power transmission companies operating in the private sector, with extensive experience in bidding, designing, financing, constructing and maintaining power transmission projects across India. The Sponsor owns 11 inter-state power transmission projects with a total network of 30 power transmission lines of approximately 7,733 ckms and nine substations having 13,890 MVA of transformation capacity. Some of these projects have been fully commissioned, while others are at different stages of development.
The investment objectives of IndiGrid are to undertake activity as an infrastructure investment trust in accordance with the provisions of the InvIT Regulations and the Trust Deed. The investment of IndiGrid shall only be in infrastructure special purpose vehicles or infrastructure projects or securities of Indian companies in accordance with the provisions of the InvIT Regulations and the investment strategy as detailed in the section entitled “Our Business” in the Offer Document. The investment by IndiGrid shall be in compliance with the provisions of the InvIT Regulations.
Of the 11 inter-state power transmission projects owned by the Sponsor, IndiGrid will initially acquire two projects - Bhopal Dhule Transmission Company Limited (“BDTCL”) and Jabalpur Transmission Company Limited (“JTCL”) - with a total network of eight power transmission lines of approximately 1,936 ckms and two substations having 6,000 MVA of transformation capacity across four states (the “Initial Portfolio Assets”). Each of the Initial Portfolio Assets have been completed and revenue-generating for more than a year. Pursuant to the ROFO Deed, it has a ‘right of first offer’ to acquire eight of the nine remaining projects (the “ROFO Assets”). The NER-II inter-state power transmission project recently awarded to the Sponsor is not a ROFO Asset.
In accordance with the InvIT Regulations, the Trust is required to distribute at least 90% of net cash available for distribution to Unitholders once at least every six months in every financial year.
|India Grid Trust InvIT IPO details|
|Subscription Dates||17 - 19 May 2017|
|Price Band||INR98 - 100 per unit|
|Fresh issue||INR2,250 crore|
|Offer For Sale||Nil|
|Total IPO size||INR2,250 crore|
|Minimum bid (lot size)||10,205 units (5,103 thereafter)|
|Sponsor & Project Manager||Sterlite Power Grid Ventures Limited|
|Investment Manager||Sterlite Investment Managers Limited|
|Listing On||NSE, BSE|
India Grid Trust's consolidated financial performance (in INR crore)
|Profit after tax||-47.3||-78.3||-301.1|
India Grid Trust
F-1, The Mira Corporate Suites, 1 & 2, Ishwar Nagar, Mathura Road
New Delhi 110 065
Phone: +91 11 4996 2200
Fax: +91 11 4996 2288
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
India Grid Trust InvIT IPO Subscription Details
|Category||Shares offered||Subscription (No. of times)|
|Day 1||Day 2||Day 3|
IPO Opening Date: 17 May 2017
IPO Closing Date: 19 May 2017
Finalisation of the Basis of Allotment: 30 May 2017
Initiation of refunds: 2 June 2017
Listing Date: 6 June 2017
Listing Price on NSE: INR99.7 per share (down marginally from IPO price)
Closing Price on NSE: INR98.6 per share (down 1.4% from IPO price)