Power Grid to offer first InvIT next week with 5 assets worth Rs 10,384 cr -

Power Grid to offer first InvIT next week with 5 assets worth Rs 10,384 cr



India’s largest power transmission company state-owned Power Grid Corporation of India (PGCIL) will launch its Infrastructure Investment Trust (InvIT) on April 29, a first for any government sector company.


After IndiGrid and IRB InvIT fund, this will be the third publicly listed InvIT for the country and second in the power transmission sector.



The company in its regulatory filings with Sebi said its issue comprises Rs 4,993.5 crore of fresh issuance and an offer for sale, whose size was not disclosed.


“The selling unitholder will be entitled to the proceeds of the offer for sale and the proceeds received from the offer for sale will not form part of the offer proceeds. The Trust will not receive any proceeds from the Offer for Sale,” said the filing by PGCIL


The offer will close on May 3. PGCIL has offered five ‘initial portfolio assets’ at an enterprise value of Rs 10,384 crore for the proposed Power Grid InvIT (PGInvIT).


This is the first InVIT to be launched by a public sector company. NHAI, which is another public sector company which has filed a draft prospectus for an InvIT is yet to announce a launch date.


The proceeds of the fresh issue in PGInvIT will be up to Rs 4993.5 crore and will be utilised – “providing loans to the Initial Portfolio Assets for repayment or pre-payment of debt, including any accrued interest, availed by the Initial Portfolio Assets; and general purposes,” said the filing by the company.


The Union Cabinet in September 2020 approved monetisation of assets of PGCIL through the InvIT model. “This approval would help PGCIL to monetise in the first lot, assets with gross block value of more than 7000 crore. These assets, which are mainly High Voltage Transmission lines and substations, are held by PGCIL in the form of Special Purpose Vehicles (SPVs). The proceeds from the asset monetization would be deployed by PGCIL in their new and under-construction projects,” it said.


The government statement said, in the first block, PGCIL would monetize assets with gross block of more than Rs 7,000 crore and based on the experience gained, further monetization shall be carried out in future.


Table: Power Grid assets to be offered to PGInvIT







Name

Enterprise value (Rs cr)

Vizag Transmission Limited

2,338.5

Kala Amb Transmission Limited

480.5

Parli Transmission Limited

2,710


Warora Transmission Limited


3,031.1

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