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Power Grid InvIT IPO evinces strong interest, may close big by May 3: Sources

Power Grid’s InvIT IPO has evinced strong interest for the issue across all segments of investors given the strong credentials of the sponsor and the quality of assets

Power Grid InvIT IPO evinces strong interest, may close big by May 3: Sources
Power Grid InvIT IPO evinces strong interest, may close big by May 3: Sources
  • The anchor book, as seen from the BSE filing by the investment manager, has a large number of marquee investors

  • On the first day of subscription, the offer was subscribed 10 percent and on Day 2, it was subscribed 59 percent

New Delhi: State-run Power Grid Corporation of India Ltd’s (PGCIL) InvIT IPO has evinced strong interest for the issue across all segments of investors given the strong credentials of the sponsor and the quality of assets, said sources. They added that by the time the issue closes on May 3, it is likely to be oversubscribed, going by the interest shown by marquee investors. The offer opened on April 29 and is public sector’s first InvIT IPO.

Power Grid InvIT IPO: Closing day may record an overwhelming response

The anchor book, as seen from the BSE filing by the investment manager, has a large number of marquee investors like Canada Pension Plan Investment Board, SBI NPS, HDFC mutual fund, SBI Mutual Fund, ICICI Prudential Mutual Fund, foreign investors like Capital, Fidelity, Schroders and a number of domestic insurance companies. Sources stated that there has been a strong demand for anchor allocation.

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The issue is open until May 3 and it has been seen in the past issues as well that institutional investors and high net-worth individuals prefer to put in their applications only on the issue closing date.

IPO subscribed 10% on Day 1, 59% on Day 2

On the first day of subscription, the offer was subscribed 10 percent as the issue received bids for 4,32,42,100 units against 42,54,25,000 units on offer. The institutional investors category was subscribed 3 percent, while those for other investors 19 percent. On Day 2, the issue was subscribed 59 percent. By the end of the day on April 30, the issue had received bids for 25,17,42,700 units out of the 42,54,25,000 units on offer for subscription.

The backdrop

Power Grid’s InvIT IPO opened on April 29 at a price band of Rs 99 to Rs 100. The Maharatna PSU is planning to raise Rs 7,735 crore through a fresh issue of up to Rs 4,993.5 crore and existing investors offering units worth up to Rs 2,741.5 crore. The initial share sale is being made through the book-building process, around three-fourths of this will be allotted to institutional investors. Out of this, 60 percent is reserved for anchor investors. Not less than 25 percent of the offer will be allotted on a proportionate basis to non-institutional investors, subject to valid bids being received at or above the offer price.

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