PowerGrid InvIT slips after debut at 4% premium to IPO price

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PowerGrid Infrastructure Investment Trust (InvIT) made its debut on the stock exchanges at a premium of 4 per cent over the issue price. The stock was listed on BSE and NSE at Rs 104 per unit, as compared to the IPO price of Rs 100. The stock closed lower amid volatility and nervous in the market.

During the day, the scrip touched an intra-day high of 104.97 on BSE, before slipping to an intra-day low of Rs 102.84. The stock closed the day on Rs 102.98, down 1.02 points or 0.98 per cent from the opening price. This is 2.98 points higher than the issue price.

On NSE, PowerGrid InvIT ended the day at Rs 102.99 per unit against its issue price of Rs 100 per unit.

In terms of volume, 23.98 lakh PowerGrid InvIT shares traded on BSE, whereas on NSE, this figure was over 4.44 crore.

PowerGrid InvIT raised Rs 7,735 crore through its initial public offer (IPO) that closed on May 3. The public issue comprised a fresh issue of Rs 4,993.48 crore and an offer for sale of 2,741.51 crore. Investors had to bid for a minimum of 1,100 units in one lot and in multiple of 1,100 units thereafter. Proceeds from the IPO are to be utilised toward providing loans to the initial portfolio assets for repayment or pre-payment of debt, including any accrued interest, and for general purposes.

PowerGrid InvIT is set up to own, construct, operate, maintain and invest as an infrastructure investment trust as permissible in terms of the InvIT Regulations, including in power transmission assets in India. Power Grid Corporation of India, the largest power transmission company in the country, is the sponsor, whereas PowerGrid UnchacharTransmission, a subsidiary of sponsor, is the investment manager for the infrastructure investment trust.

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Recently, Power Grid Corporation of India acquired Bikaner-II Bhiwadi Transco Limited (BBTL) under Tariff Based Competitive Bidding (TBCB) which is a project company to establish Transmission System Strengthening Scheme for evacuation of power from solar energy zones, in Rajasthan.