Power Grid Corporation of India share price jumped over 4 percent in the morning session on April 23.
The electricity transmission company is preparing to launch the first ever InvIT (infrastructure investment trust) IPO by a state-owned firm, on April 29, marking a landmark deal for the Indian capital markets, people with knowledge of the matter told Moneycontrol.
The move comes at a time when the government has set a disinvestment target of Rs 1.75 lakh crore for FY22 and is betting big on initial public offerings (IPOs) by Life Insurance Corporation and Air India IPOs, after coming up short in the previous financial year.
An InvIT is a collective investment scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return.
Also Read: Power Grid may launch landmark Rs 7,700 crore InvIT IPO on April 29, first ever by a PSU in India
“ This is a big transaction and the size of the IPO is likely to be around Rs 7,700 crore, with a primary component of around Rs 4500 crores and the balance making up the secondary component. The price band is likely to be announced on April 29,” said one of the persons cited above.
The stock was trading at Rs 212.20, up Rs 8.60, or 4.22 percent at 09:46 hours. It has touched an intraday high of Rs 212.90 and an intraday low of Rs 203.65.
On January 27, 2021, Moneycontrol was the first to report the filing of the DRHP ( draft red herring prospectus ) with market regulator Sebi by Power Grid.
ICICI Securities, Axis Capital, Edelweiss Financial Services & HSBC Securities and Capital Markets are the investment banks working on the InvIT IPO according to the DRHP filed with Sebi. Law firms Cyril Amarchand Mangaldas and J Sagar Associates are the legal advisors.