India: PowerGrid InvIT IPO subscribed 61% on second day of bidding

The public issue of PowerGrid Infrastructure Investment Trust was subscribed 61% on Friday, the second day of the bidding.

The issue received bids for 25.82 crore equity shares against the issue size of 42.54 crore shares, according to stock exchange data.

The portion of the share sale reserved for qualified institutional investors was sub- scribed 38% on day two, while that reserved for non-institutional investors was subscribed 88%.

PowerGrid plans to raise nearly 7,735 crore via the public issue by issuing fresh shares worth 4,993.48 crore and an offer for sale of units held by PowerGrid worth 2,741.50 crore. The issue will close on 3 May.

“We are sanguine on PG Invit’s business model, which is backed by predictable cash flows and offers growth visibility. A Government backed sponsor like PGCIL further instills confidence”, said brokerage firm Nirmal Bang in a report to its clients.

“PG InvIT is AAA rated and at the issue price of Rs. 100 per unit, offers 12.0% yield, trading at a spread of 600 bps to the 10 year G-sec (6.0%). In our view, such a spread is very attractive given the high degree of certainty of cash flows & distribution per unit going forward,” Nirmal Bang report added.

The brokerage expects 3 a unit per quarter dividend and 20-30% listing gains. Upon listing Nirmal Bang expects the yields to settle between 9-10% in line with that of the existing listed Invit of Indigrid; which translates to the Unit price settling in the range of Rs120-130.

Powergrid Infra InVIT is the first InvIT from a public sector undertaking (PSU)

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.