Powergrid Infrastructure Investment Trust
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Powergrid Infrastructure Investment Trust IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹100
Per ShareLot Size
1100 Shares
Minimum Investment
₹1,10,000
Issue Size
₹7,734.99 Cr
Face Value
₹100
Per ShareIPO Type
Book Building-InvITs
Retail Quota
0%
QIB Quota
75%
NII Quota
25%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Powergrid Infrastructure Investment Trust
Business model, operations, and market positioning.
Issue Type
Book Building-InvITs
ISIN
INE0GGX23010
About the Company
POWERGRID Infrastructure Investment Trust is an InvIT 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. It was registered with SEBI as an InvIT on January 7, 2021. Its Sponsor, Power Grid Corporation of India Limited, also acting in the capacity of its Project Manager, is a CPSE under the Ministry of Power, GoI and is listed on BSE and NSE. Its Sponsor was conferred with `Maharatna' status on October 23, 2019 by the GoI. As of March 31, 2019, its Sponsor was the third largest CPSE in terms of gross block as per the Public Enterprises Survey 2018-19 issued by the GoI, Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises in February 2020 ("Public Enterprises Survey"). As of November 1, 2020, its Sponsor was the largest power transmission company in India in terms of length of transmission lines measured in circuit kilometres. As of August 31, 2020, its Sponsor's share in India's cumulative inter-regional power transfer capacity was more tan 85%. Further, for Fiscal 2020, its Sponsor's share in the transmission charges for ISTS billed by the CTU is over 85%. According to the World Bank, its Sponsor was internationally the third largest transmission utility as of October 25, 2019. Its Sponsor has been ranked the Fastest Growing Electric Utility' in the Asia/Pacific Rim' region for seven successive years since 2014 based on compound growth rate according to Platts Top 250 Global Energy Company Rankings and is the only Electric Utility to feature in the Top 50 Fastest Growing Energy Companies list since 2014.
Industry Overview
Electricity is an essential requirement for all facets of its life. It has been recognized as a basic human need. It is a critical infrastructure on which the socio-economic development of the country depends. Power Sector is a strategic and critical sector and power supply system supports the entire economy and day to day life of the citizens of India. Whilst India is the third largest producer of electricity in the world, in 2014, the share of electricity in India's final energy demand was only 17% compared with 23% in the member countries of Organization for Economic Cooperation and Development (OECD) and ranks well below the global average in electricity consumption. The Draft NEP envisages the share of electricity in India's total energy consumption to rise to about 26% in 2040.
Company History
POWERGRID Infrastructure Investment Trust is Registered in the Republic of India as an irrevocable trust set up under the Indian Trusts Act, 1882, on September 14, 2020, and as an infrastructure investment trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, as amended, on January 7, 2021, having registration number IN/InvIT/20-21/0016)
Products & Services
- Set-up to own, construct, operate, maintain and invest as an infrastructure investment trust
Growth Strategy
- Focused business model with productive and operational efficiency to enhance returns
- Capitalize on value accretive growth through acquisitions and non-transmission revenues
- Optimization of transmission assets through an efficient capital structure
Customer Base
Designated Inter State Transmission System Customers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
POWERGRID Infrastructure Investment Trust (the "Trust") is issuing up to (*) Units (as defined below) for cash at a price of Rs. (*) per unit aggregating up to Rs. 4993.48 Crores (the "Fresh Issue") and the Selling Unitholder is offering up to (*) Units aggregating up to Rs. 2741.51 Crores (the "Offer for Sale" and together with the Fresh Issue, the "Offer"). Offer Price Rs. 100 per Unit Bidders (Other than Anchor Investors) can make Bids for a minimum of 1100 Units and in multiple of 1100 Units thereof. Minimum Bid size for Bidder other than Anchor Investors was Rs. 0.01 Crores
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Strong lineage and support from its Sponsor and Project Manager
- Consistent and stable cash flows from assets with long term visibility and low counter party risks
- Strong financial position
- Government support and an established regulatory framework
- Strategic and critical nature of power transmission infrastructure with low risk of emergence of alternate transmission infrastructure
- The Trust is a newly settled trust and does not have an established operating history, which will make it difficult to accurately assess its future growth prospects.
- We may be unable to operate and maintain its power transmission projects to achieve the prescribed availability which may adversely affect its cash flows and results of operations.
- Substantially all its revenues are derived from payments received from Designated Inter State Transmission System Customers ("DICs"). A delay in payments of billed transmission charges by the DICs to the CTU may adversely affect its cash flows and results of operations.
- As the terms and conditions, including the transmission charges under the TSAs are generally fixed, it may not be able to offset increase in costs, including operation and maintenance costs, solely from transmission charges payable to it under the TSAs. This may adversely impact its business, prospects, financial condition, results of operations and cash flows
- The ability of the Project Manager to ensure that its power transmission systems are fully operational at all times may be subject to the limitations of the power grid, existing equipment or operational risks outside of its control.