India: PowerGrid InvIT IPO may open next week

IPO

PowerGrid Infrastructure Investment Trust is likely to launch its initial public offering at the end of April, two people aware of the development told Mint.

This will be the first time a state owned entity is monetizing its infrastructure assets through the InvIT route. This will also be only the third InvIT to be listed in the Indian markets, after IRB InvIT and India Grid Trust both of which went public in 2017.

In January Mint reported that the IPO will see the InvIT raise up to 4,995 crore by selling new units of the trust, while its sponsor Power Grid also plans to sell units worth up to Rs3,000 crore through the IPO, taking the total size of the share sale to almost Rs8,000 crore.

The InvIT will initially comprise of 11 power transmission lines currently owned and operated by Power Grid.

A spokesperson for PowerGrid could be immediately reached for a comment.

This will also be the first time a state-owned entity is monetizing its infrastructure assets through the InvIT route. This will also be only the third InvIT to be listed in the Indian markets, after IRB InvIT and India Grid Trust both of which went public in 2017.

An infrastructure investment trust is a quasi debt instrument that provides investors with a steady yield derived from cashflows from operating infrastructure projects such as roads, transmission lines or renewable energy projects. Publicly traded InvITs, like the one proposed by Power Grid can also offer an equity upside to investors.

ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets India are the lead managers to the issue.

Power Grid is not the only state owned entity that plans to raise funds through the InvIT route.

Mint reported on 15 January that state owned National Highways Authority of India (NHAI) plans to mobilize almost 10,000 crore this calendar year through an InvIT and other avenues.

The article was first published on livemint.com

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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.