PowerGrid InvIT IPO subscribed 4.83 times

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New Delhi: The initial public offer of PowerGrid Infrastructure Investment Trust was subscribed 4.83 times on the last day of subscription on Monday.

The Rs 7,735-crore issue received bids for 2,05,40,48,700 units against 42,54,25,000 units on offer, as per the NSE data. The institutional investors’ category was subscribed 4.63 times and other investors 5.07 times.

The IPO comprised a fresh issue of shares worth Rs 4,993.48 crore and an offer for sale to the tune of Rs 2,741.50 crore by selling shareholders. The price range for the offer was Rs 99-100 per unit.

PowerGrid Infrastructure Investment Trust on Wednesday raised a little over Rs 3,480 crore from anchor investors. PowerGrid Infrastructure Investment Trust (PowerGrid InvIT) is owned by the state-owned PowerGrid Corporation of India.

This is the first Infrastructure Investment Trust (InvIT) in the country to be floated by a public sector company.

PowerGrid InvIT units are proposed to be listed on the BSE and the National Stock Exchange. InvITs are instruments on the pattern of mutual funds and are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time.

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 Limited, Axis Capital Limited, Edelweiss Financial Services Limited, and HSBC Securities and Capital Markets (India) Private Limited were the managers of the offer.