Power Grid launches PGInvIT, could offer 18 more assets
State-owned largest power transmission company Power Grid Corporation of India
(PGCIL) launched its Infrastructure Investment Trust (InvIT), becoming the first public
sector company to do so.
After IndiGrid and IRB InvIT fund, Power Grid InvIT (PGInvIT) will be the third publicly
listed InvIT in the country and second in the power transmission sector.
PGInvIT has offered a price band of Rs 99-100 per unit for the public issue. The issue
will open on April 29 and close on May 3. The InvIT will raise Rs 4,993.5 crore as fresh
issuance and PGCIL is also providing an offer for sale of Rs 2,742 crore of existing units.
PGCIL has offered five „initial portfolio assets‟ at an enterprise value of Rs 10,384 crore
for the proposed PGInvIT.
The net proceeds from the offer will be utilised towards 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 for general purposes, said PGCIL, which is the
sponsor of the invIT.
Speaking at the launch, K Sreekanth, chairman and managing director, PGCIL, said the
company will offer more transmission assets to the InvIT in the future. “Power grid has
18 projects with 22,500 crore investment which are under construction. As per our plans,
they will be offered to InvIT in the future. The government has allowed Power Grid to
monetise its other TBCB subsidiaries through the InvIT route, which are under
construction or will be acquired by it in the future.”
PGCIL acquires power transmission projects through two routes – nomination under
which the Centre or state government allots projects or through competitive bidding
Sreekanth said the current TBCB portfolio of PGCIL has Rs 5,000 crore worth of
operational assets and seven under construction projects at an estimated cost of Rs
These include four projects which are for renewable energy linkin