State-owned Power Grid Corporation of India has filed draft papers with Sebi for floating an Infrastructure Investment Trust (InVIT) through which it seeks to raise more than Rs 5,000 crore.
This will be the first InVIT in the country to be floated by a public sector company. The offer includes fresh issue as well as offer- for-sale.
The power transmission major plans to mop up total Rs 4,999.48 crore through fresh issue, as per the draft papers filed with the Securities and Exchange Board of India (Sebi). The offer-for-sale amount has not been specified in the draft papers.
The PowerGrid InVIT units are proposed to be listed on the National Stock Exchange and the BSE.
The trust's initial portfolio assets will have five assets -- PVTL (PowerGrid Vizag Transmission Ltd), PKATL (PowerGrid Kala Amb Transmission Ltd), PPTL (PowerGrid Parli Transmission Ltd), PWTL (PowerGrid Warora Transmission Ltd) and PJTL (PowerGrid Jabalpur Transmission Ltd).
The proceeds from the offer will be utilised for providing loans to the initial portfolio assets for repayment or pre-payment of debt, including any accrued interest, and for general purposes.
ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets (India) are the lead managers for the offer.
While Sebi first notified the regulations for InVITs and REITs (Real Estate Investment Trusts) in 2014, only a few such trusts have listed their units in the country so far. The regulator has extended various relaxations for listing of these trusts and such trusts are popular in some advanced markets.
