India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Ltd, will launch its initial public offering (IPO) on May 17. The price band for the IPO has been fixed at Rs 98-100 per share and the company is looking to raise Rs 2,250 crore through the issue.
This is India's second InvIT IPO after the one issued by IRB Infrastructure and the first in the power space.
InvITs are trusts that manage income-generating infrastructure assets, offering investors regular yields and a liquid way to invest in infrastructure projects.
The price band has been set at Rs 98-100 per share, with 60 percent of the offer being set aside for institutional investors.
The trust currently holds two projects with a total of eight power transmission lines and two substations. The sponsor -- Sterlite Power Ltd. -- will transfer three inter-state power transmission projects over the next two years, said Pratik Agarwal, the chief executive officer of Sterlite Infraventures Ltd., in an interview to BloombergQuint.
More than 60 percent or Rs 1,600 crore will be used to repay debt in the two projects currently housed under the trust. The two projects are the Bhopal Dhule Transmission Project Ltd. and Jabalpur Transmission Project Ltd.
Morgan Stanley India Company Pvt. Ltd, Citigroup Global Markets India Pvt. Ltd and Edelweiss Financial Services Ltd have been appointed as the lead managers for the issue.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
