On its maiden day of trading, shares of PGlnvlT, the infrastructure investment trust (InvIT) sponsored by state-run electrical energy transmission utility Power Grid Corporation of India (PGCIL), closed at 2.98% above the challenge value of Rs one hundred on the BSE.
It reached the highest point of 4.97% premium in the day, when the lowest was 2.84%. The closing value of Rs 102.98 was, in truth, .98% decrease than the opening value of Rs 104 per share. PGCIL is in search of to monetise some of its transmission assets by way of PGInvIT, which will contribute to the government’s asset monetisation programme. At Friday-finish, PGInvIT’s market place capitalisation was at Rs 9,371.2 crore.
This is the very first time a PSU in the energy sector has monetised its assets by way of the InvIT model. After the Cabinet authorized the monetisation of PGCIL assets in September 2020, the business had transferred 74% of its shareholding in 5 operational transmission systems in the InvIT.
PGCIL’s chairman and managing director K Sreekant had stated earlier that as several as 18 other transmission projects worth Rs 22,500 crore becoming constructed by the business by way of the tariff-based competitive bidding route could also be monetised in due course by way of PGInvIT.
The initial public give was opened on April 29 and closed on May 3. The InvIT will be distributing 90% of the net money out there for distribution to unitholders after every single quarter in every single monetary year. All assets beneath PGInvIT have 35 years of transmission service agreement with their respective prospects, and their income flows are insulated from demand, provide and value fluctuation of energy tariff. Analysts had pointed that the InvIT could provide yield of 11–12% in initial years.