PowerGrid Infrastructure Investment Trust (InvIT) IPO opened for subscription on Thursday, April 29, 2021, in the value band of Rs 99-one hundred per unit. The units of PowerGrid InvIT are proposed to be listed on BSE and NSE. Through this IPO, the organization plans to raise Rs 7,735 crore comprising a fresh concern of Rs 4,993.48 crore and present for sale of up to Rs 2,741.51 crore of current units. Upon effective listing, it will turn into the third InvIT to be listed on the bourses just after IndiaGrid Trust and IRB InvIT.
Power Grid getting Maharatna of the GOI and getting a dominant player in the transmission of energy (about 85% marketplace share) the prospects are anticipated to be vibrant. “As the operations are critical it can be expected to see great interest from the Street (both retail and institutional), The firm has stable cash flow and the Industry is capital intensive with long gestation period thereby reducing the threat of competitors,” Vishal Balabhadruni, Senior Research Analyst at CapitalVia Global Research, told TheSpuzz Online.
Any investor subscribing to the concern would demand a minimum investment of Rs 1.1 lakh per lot. The concern has been reserved 75 per cent for institutional investors and the remaining 25 per cent for non-institutional investors. As per management projections, Powergrid InvIT is most likely to produce money flow from operations at an typical of Rs 11.7 billion more than the next 3 years, which implies a 10 per cent money flow yield. Powergrid InvIT’s Sponsor, Power Grid Corporation of India Limited (PGCIL), also acting in the capacity of Project Manager, is a CPSE below the Ministry of Power. The sponsor also delivers transmission and distribution consultancy services in India and other jurisdictions, with footprints in 21 nations (like India). “We recommend to subscribe to this IPO as the sponsor is the mega player with so many ongoing projects along with the strong financial performance and stable cash flows,” mentioned Saurabh Joshi and Ridhima Goyal, investigation analysts, Marwadi Shares and Finance Ltd.
PGInVIT is an infrastructure investment trust (InVIT) established to personal, construct, operate, sustain and invest in energy transmission assets. Analysts at Prabhudas Lilladher mentioned that PGInvIT is nicely positioned to take benefit of the development possible of India’s energy transmission market provided their monetary position, help from sponsors and robust regulatory framework for energy transmission in India. It is also focused on giving steady and sustainable distributions to their unitholders. “We recommend subscribing to the IPO given its competitive advantage of its sponsors, consistent and stable cash flow, strategic and critical nature of power transmission business and strong financial positioning,” they mentioned.
Analysts at ICICI direct Research mentioned that a sturdy monetary position, government help and an established regulatory framework will allow the InvIT to finance future development with out substantial dilution to the unitholders. Furthermore, constant and steady money flows from assets provide extended-term sustenance and visibility.
(The views in this story are expressed by the respective authorities of investigation and brokerage firm. TheSpuzz Online does not bear any duty for their guidance. Please seek advice from your investment advisor just before investing.)