Power Grid Infrastructure Investment (PowerGrid InvIT) is owned by the Indian company Power Grid Corporation. It will be the country’s first infrastructure investment fund (InvIT) to be launched by a public sector company.

The initial public offering (IPO) includes a new issue of shares worth Rs 4,993.48 crore and a sale offer for Rs 2,741.50 crore by the selling shareholders.

It is proposed that PowerGrid InvIT units be listed on the National Stock Exchange and BSE.

InvITs are mutual fund model instruments and are designed to pool small amounts of money from a number of investors to invest in assets that provide cash flow over a period of time. time.

The proceeds of the offering will be used to make loans to assets in the original portfolio for the repayment or early repayment of debt, including accrued interest, and for general purposes.

The assets of the initial trust portfolio will include five assets – PVTL (PowerGrid Vizag Transmission Ltd), PKATL (PowerGrid Kala Amb Transmission Ltd), PPTL (PowerGrid Parli Transmission Ltd), PWTL (PowerGrid Warora Transmission Ltd) and PJTL (PowerGrid Jabalpur Transmission Ltd)).

PowerGrid InvIT was set up to own, build, operate, maintain and invest as an infrastructure investment trust, as permitted by the InvIT regulation, including in power transmission assets in India.

ICICI Securities, Axis Capital, Edelweiss Financial Services and HSBC Securities and Capital Markets (India) are the main managers of the offer.

While market regulator Sebi first notified regulations for InvITs and REITs (Real Estate Investment Trusts) in 2014, only a few of these funds have listed their units in the country so far.

The regulator has extended various relaxations for the listing of these trusts and these trusts are popular in some advanced markets. SP KKS YEARS YEARS