India Grid Trust debuts lower at Rs 99.70, down 6% from issue price

India Grid Trust shares started off trade on a negative note Tuesday. The stock price opened at Rs 99.70 against issue price of Rs 100 on the National Stock Exchange.

It fell as much as 6.3 percent in early trade to Rs 93.70 amid consolidation in the market. Even the subdued response to its public issue, which was subscribed 1.17 times, indicated some correction in the stock.

At 10:06 am hours IST, the stock price was trading at Rs 96.20, down 3.8 percent or Rs 3.8.

Harsh Shah, CFO, India Grid Trust said the company can quadruple its EBITDA (earnings before interest, tax, depreciation and amortisation) over next 3-4 years.

"We plan to add more assets to the InvIT going forward," he said, adding focus remains on completed transmission assets.

The company will acquire only AAA-rated transmission assets, he said.

Current debt of India Grid stood at Rs 1,000 crore. Shah said the company would raise debt to acquire asset without diluting equity.

India Grid Trust, second in the infrastructure investment trusts (InvIT) space, raised Rs 2,250 crore through initial public offering that was opened for subscription during May 17-19.

India Grid Trust, an infrastructure investment trust established to own inter-state power transmission assets in India, sponsored by Sterlite Power Grid Ventures.

InvITs are debt instruments that are traded in the market and can act as investment vehicles for sponsors. The listing of instruments enables promoters of infrastructure to monetise completed assets and raise funds for other long-term projects.