Power Grid Corporation raises Rs 2,736 crore through InvIT OFS

State-run Power Grid Corporation of India Ltd (PGCIL) on Friday said it has received Rs 2,736.02 crore through sale of 27.41 crore units in the PowerGrid Infrastructure Investment Trust (PGInvIT) offer for sale.

Earlier in the day, the units issued by PGInvIT were listed on NSE and BSE. PGCIL has created the PGInvIT to monetise its assets.

The initial portfolio of assets in the InvIT comprises five special purpose vehicles (SPVs) — PowerGrid Vizag Transmission Ltd (PVTL), PowerGrid Kala Amb Transmission Ltd (PKATL), PowerGrid Parli Transmission Ltd (PPTL), PowerGrid Warora Transmission Ltd (PWTL) and PowerGrid Jabalpur Transmission Ltd (PJTL).

PGCIL, under the process of monetisation of assets through the InvIT, has transferred 74 per cent of its shareholding to the PGInvIT, it said in a BSE filing.

In lieu of consideration of shareholding so transferred, units were allotted by PGInvIT to PGCIL.

Out of the total 410,650,900 units allotted to PGCIL, 136,500,100 units (15 per cent 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 PGCIL.

The remaining 27,41,50,800 units were sold by way of Offer for Sale (OFS).

PGCIL received an amount of Rs 2736.02 crore (net of STT) against the OFS, it stated.

Earlier this month, the initial public offer of PowerGrid Infrastructure Investment Trust was subscribed 4.83 times. Price range for the offer was at Rs 99-100 per unit.

PGInvIT closed the trade with a premium of 3 per cent on Friday against its issue price of Rs 100.

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.

In a separate filing, the company said its wholly-owned subsidiary PowerGrid Ajmer Phagi Transmission Ltd, which had bagged a project to establish transmission system for “Construction of Ajmer (PG)-Phagi 765 kV D/C line along with associated bays for Rajasthan SEZ” on build, own, operate and maintain basis, successfully commissioned the project on May 6, 2021.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor