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India Grid Trust shares trade 4.5% lower in stock market debut

LiveMint logoLiveMint 06-06-2017 Ravindra N. Sonavane

Mumbai: India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Ltd, on Tuesday fell 4.5% on debut even after its Rs2,250 crore initial public offering (IPO) subscribed 1.35 times.

This is the second InvIT after the tepid debut of IRB InvIT, which got listed on the exchanges on 19 May.

The stock opened and touched a high of Rs100 a share, and a low of 95.51 apiece. At 10.05am, the scrip was trading at Rs96 on the BSE, down 4% from its issue price of Rs100. India’s benchmark Sensex Index fell 0.01% to 31,307.97 points.

The offering opened on 17 May and closed at 19 May. The portion of the share sale reserved for institutional investors was subscribed 1.14 times, while that for non-institutional and high networth individuals (HNIs) was subscribed 1.59 times.

On 16 May, India Grid Trust raised Rs1,012.4 crore as part of its anchor book allocation. It’s anchor book saw participation from foreign institutional investors such as Deutsche Global Infrastructure Fund, Future Fund Board of Guardians managed by Rreef America LLC, Driehaus Emerging Markets Small Cap Growth Fund and Jupiter South Asia Investment Co. Ltd.

Domestic investors which subscribed to the book included Edelweiss Tokio Life Insurance Co. Ltd, Reliance Nippon Life Insurance Co. Ltd and Reliance General Insurance Co. Ltd. Units of the trust were allotted to a total of 19 institutional investors at Rs100 per unit.

The proceeds of the issue will be used to reduce debt of Bhopal Dhule Transmission Co. and Jabalpur Transmission Co.

India Grid reported a loss of Rs301.10 crore in fiscal year 2017 against loss of Rs78.4 crore a year ago. Revenue from operations was up 31.8% from a year ago to Rs466.70 crore.

Sterlite Power Grid Ventures owns 11 inter-state transmission projects with a total network of 30 transmission lines of around 7,733 circuit kilometers and nine sub-stations with 13,890 mva of transmission capacity. Of the 11 inter-state transmission projects, IndiGrid will initially acquire two projects—Bhopal Dhule Transmission and Jabalpur Transmission—with a total network of eight transmission lines of around 1,936 circuit km and two substations having 6,000 mva capacity across four states.

Morgan Stanley India Co. Pvt. Ltd, Citigroup Global Markets India Pvt. Ltd and Edelweiss Financial Services Ltd are the lead managers of the India Grid IPO

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