PowerGrid InvIT closes at 3% premium over issue price on debut

• The stock ended the day at Rs 103 on BSE and Rs 102.99 on the National Stock Exchange (NSE) against the issue price of Rs 100 a unit

• In a regulatory filing to the stock exchanges on Friday, Power Grid said that it has transferred 74 percent of its stake in five SPVs to PowerGrid InvIT

New Delhi: State-run Power Grid Corporation of India Ltd's (PGCIL) PowerGrid Infrastructure Investment Trust (InvIT) closed with 3 percent gains on the first day of making its debut on the bourses on Friday. The stock ended the day at Rs 103 on BSE and Rs 102.99 on the National Stock Exchange (NSE) against the issue price of Rs 100 a unit. It touched an intra-day high of Rs 104.97 and a low of Rs 102.84 on BSE. The PowerGrid InvIT, which is the first infrastructure investment trust by a PSU, traded with volume of 23.98 lakh units on the BSE and 4.44 crore units on the NSE.

Power Grid transfers 74% shares to PowerGrid InvIT

In a regulatory filing to the stock exchanges on Friday, Power Grid said that it has transferred 74 percent of its stake in five special purpose vehicles (SPVs) to PowerGrid InvIT. "POWERGRID, under the process of monetization of assets through InvIT, of its 05 SPVs viz. POWERGRID Vizag Transmission Limited (PVTL), POWERGRID Kala Amb Transmission Limited (PKATL), POWERGRID Parli Transmission Ltd (PPTL), POWERGRID Warora Transmission Limited (PWTL) and POWERGRID Jabalpur Transmission Ltd (PJTL) (collectively to be referred as 'Initial SPVs'), has transferred 74% of its Shareholding to Powergrid Infrastructure InvestmentTrust (PGInvIT)," said the Maharatna PSU.

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"In lieu of consideration of Shareholding so transferred, Units were allotted by PGInvIT to POWERGRID. Out of the total 410,650,900 Units allotted to POWERGRID, 136,500,100 Units (15% of total units of PGInvIT outstanding post issue, to be locked-in from the date of listing of Units pursuant to InvIT Regulations) were retained by POWERGRID and remaining Units were sold way of 'Offer for Sale'. POWERGRID received an amount of Rs 2736.02 crore (net of STT) against the OFS," it added. The five SPVs are now no longer Power Grid subsidiaries.

The backdrop

The PowerGrid InvIT IPO, which opened on April 29 and closed earlier on May 3, was subscribed 4.83 times. The issue was priced in the band of Rs 99-100 and included fresh issues of units worth Rs 4,993.48 crore, while the rest was an offer for sale. Power Grid had earlier said that the proceeds will be used for providing loans to initial portfolio assets for repayment or pre-payment of debt.

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