IPO Note by Sonam Sinha has been given at bottom of this page. You may study the same.
Grey Market Trend :
on 19 May 17 GMP Rs. 7.50
IRB InvIT has GMP of Rs. 9
As on Date & Time ………………….QIB ………Others ………… Total
Shares Offered ………………….68,880,294 57,398,544 126,278,838
Day 1 – May 17, 2017 05:00 pm 0.0300 ……… 0.1100 …….. 0.0700
Day 2 – May 18, 2017 05:00 pm 0.0799 ……… 0.2650…….. 0.1613
Day 3 – May 19, 2017 05:00 pm 1.1350 ……… 1.5942…….. 1.3492
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India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Ltd, on 16th May 17, raised Rs1,012.4 crores as part of its anchor book allocation.India Grid’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.
What are InvITs?
An InvIT is a new capital market product promoted by the Government to enable Infrastructure Developers to free up tied-up capital. InvITs are designed to attract low cost long term capital from FIIs, Insurance and Pension Funds and the DIIs (mutual funds, Banks) which will also benefit to HNIs .
Issue Opens on : May 17, 2017
Issue Closes on :May 19, 2017
Issue Type: Book Built Issue IPO
Issue Size: [.] Equity Shares of Rs aggregating up to Rs 2,250.00 Cr
Face Value: Rs Per Equity Share
Issue Price: Rs 98 – Rs 100 Per Equity Share
Minimum Order Quantity: rs. 10 lacs
Listing proposed at: BSE, NSE
IndiGrid has been given the corporate credit rating of “AAA”/Stable by Crisil, “IrAAA”/Stable by ICRA and IND”AAA”/Stable by India Ratings.
Short Note on IndiGrid:
IndiGrid InvIT Fund is an infrastructure investment trust established to own inter-state power transmission assets in India.
Sterlite Power Grid Ventures Ltd, sponsor of IndiGrid InvIT Fund is one of the leading independent power transmission companies operating in the private sector, with extensive experience in bidding, designing, financing, constructing and maintaining power transmission projects across India.
Company’s sponsor (Sterlite Power Grid Ventures Ltd) owns 11 inter-state power transmission projects with a total network of 30 power transmission lines of approximately 7,733 ckms and nine substations having 13,890 MVA of transformation capacity. Some of these projects have been fully commissioned, while others are at different stages of development. They recently won bids for two transmission projects in Brazil,
Of the 11 inter-state power transmission projects owned by the Sponsor, IndiGrid will initially acquire two projects with a total network of eight power transmission lines of 1,936 ckms and two substations having 6,000 MVA of transformation capacity across four states howvever it has right to acquire further projects from the Sponsor and that will boost profitability of the Trust.
Why it is worth applying for HNIs ?
Projects taken over by the Trust , are revenue generating for more than a year. IndiGrid InvIT units will have tenure of up to 35 years and as the trust will distribute 90 per cent of its cash generation to unit holders at least twice a year, this instrument is providing lucrative yield for a longer tenure.As per SEBI 90% of the cash generation has to be distributed but the management wish to distribute 100% of the cash generation. In the current environment, these units have no major risk factor and higher spending plans of the government for the power sector.
Based on the offer document data, it appears that it may pay a minimum of 10.9% return for initial periods which will increase further based on its income and cash generation. Trust will need prior approval of the unit holders at the time of any purchase / divestment of assets, & that way, it will provide transparency. In the present environment, when FDRs give averge yield of less than 7%, this instrument can give higher yield to the HNIs and QIBs,FIIs and that can be the reason for huge oversubscription.
Grey Market Trend :
on 17 May 17 GMP Rs. 7.50
on 16 May 17 GMP Rs. 7