PowerGrid Infrastructure Investment Trust closed with 3 percent gains on the first day of trading on May 14, affected by the volatility and nervousness in the equity market.
The stock ended the listing day at Rs 103 on the BSE and Rs 102.99 on the National Stock Exchange against the issue price of Rs 100 a unit. It touched an intraday high of Rs 104.97 and a low of Rs 102.84 on the BSE.
In terms of volumes, PowerGrid InvIT, the first infrastructure investment trust by the state-owned entity, traded with volume of 23.98 lakh units on the BSE and 4.44 crore units on the NSE.
PowerGrid InvIT mopped up Rs 7,735 crore through its public issue. The fresh issue funds will be used for providing loans to the initial portfolio assets for repaying of debts.
The country's largest transmission power company Power Grid Corporation of India is the sponsor and PowerGrid Unchahar Transmission, a subsidiary of sponsor, is the investment manager for the InvIT.
Of the sponsor's tariff-based competitive bidding (TBCB) projects, PowerGrid InvIT was proposed to acquire five projects initially with a total network of 11 transmission lines of approximately 3,698.59 ckm and three substations having 6,630 MVA of aggregate transformation capacity, as of December 2020, across five states in India, which is an initial portfolio assets of the InvIT.
"There are large a number of projects available with the sponsor, another Rs 27,000 crore of projects are in the pipeline and at different stages which will be progressively available for monetisation as per our requirement," said K Sreekant, CMD of Power Grid in an interview to CNBC-TV18.
"Investors can expect fairly predictable and stable kind of cash flows from the existing five assets, and also there is good growth potential going forward," he said.
After the public issue that was opened for bidding during April 29-May 3, the InvIT will own a 74 percent stake in each of the five TBCB projects and will acquire the remaining 26 percent stake through debt (from Power Grid) after the lock-in period that ends by 2024.