India Grid Trust (IndiGrid), an Infrastructure Investment Trust (InvIT) sponsored by billionaire Anil Agarwal-promoted Sterlite Power Grid Ventures (SPGV), will invest the share sale proceeds in the initial projects of its two special purpose vehicles (SPV).

The company, as per SEBI regulations, will use nearly Rs 1,600 crore to repay project loans.

SPGV, which had fixed a price band of ₹98-100 a unit for its proposed initial share sale, is now planning to raise ₹2,250 crore through the InvIT, making it the first-ever such issue by an Indian power sector firm.

The InvIT will open on May 17 and close on May 19, while the bids can be made for a minimum of 10,205 units and in multiples of 5,103 units thereafter.

The investments would be made in two SPVs – Bhopal Dhule Transmission Company Ltd and Jabalpur Transmission Company Ltd – which has a total of 1,936 km and two sub-stations with 6,000 MVA of transformation capacity, said Pratik Agarwal, CEO of IndiGrid.

An independent power transmission company, SPGV owns 10 inter-State power transmission projects with a total network of 29 power transmission lines of about 6,767 km and seven sub-stations with 12,630 MVA transformation capacity. Many of these projects have been fully commissioned, while others are at different stages of development.

InvITs, like mutual funds, enable individuals to pool investments in the infrastructure sector and earn a return on the income (after deducting expenditure).