English
Specials
    Upgrade
    MoneycontrolBe a PRO
    Moneycontrol PRO
    you are here: HomeNewsBusinessMoneycontrol Research

    Power Grid InvIT: Offering good and predictable yield

    With secured cash flows, long-term nature of the assets, strong balance sheet, support of the parent and the highest credit rating, the Power Grid InvIT issue should reward its unit holders

    Jitendra Kumar Gupta
    April 29, 2021 / 11:17 AM IST
    Power Grid InvIT: Offering good and predictable yield

    Power Grid Corporation of India and REC | Power Grid Corporation, pursuant to its selection as the successful bidder under Tariff based competitive bidding, acquired Ramgarh New Transmission (RNTL), the project SPV to establish Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II - Part A, on build, own, operate and maintain (BOOM) basis from the bid process coordinator - REC Power Distribution Company.

    As an investment route in the listed space, Infrastructure Investment Trusts or InvITs are largely designed to offer a slightly better yield, without compromising on the risk, compared to a pure debt instrument. In the case of the proposed Power Grid InvIT, the company has pooled transmission assets, whose cash flow will be distributed among its unit holders.The InvIT is expected to generate distributable cash flows of around Rs 1150 crore annually for the next three years, which —...

    • PRO Panorama

      Moneycontrol Pro Panorama | Pharma companies to get inflation booster in FY24 

      Mar 28, 2023 / 02:26 PM IST

      In today’s edition of Moneycontrol Pro Panorama: India must build consensus on climate funding, fertiliser subsidy likely to dro...

      Read Now

    To read the full story, Subscribe to Moneycontrol PRO

    Access the exclusive stories, weekly investment ideas and daily technical calls in an Ad free experience

    View Plans

    Already a member? Sign in

    Limited Period offer on Moneycontrol PRO. Subscribe to PRO and get up to

    50% OFF

    What Do You Get

    • Ad free experience

      Experience a non-intrusive navigation and faster response in the ad free mode

    • Sharpest Opinions

      Access to 230+ exclusive stories per month from our editorial and Experts

    • +

      Have a Global edge with access to content from world renowned experts and journalist

    • Actionable Insights

      Access to 40+ weekly investment ideas including 4 daily technical calls

    • Virtual Events

      Exclusive access to live webinars from market experts on trading and investment strategies

    • Newsletters

      Daily and weekly insights bundled and sent to your inbox to keep you ahead in the race.

    View Offers

    Get upto 50% discount on limited period offers