India Grid Trust (IndiGrid), an Infrastructure Investment Trust (InvIT) sponsored by billionaire Anil Agarwal-promoted Sterlite Power Grid Ventures (SPGV), has fixed a price band of ₹98-100 a unit for its proposed initial share sale. The company 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. The bids can be made for a minimum of 10,205 units and in multiples of 5,103 units thereafter, the company said in a newspaper advertisement on Tuesday.
Morgan Stanley, Citigroup Global Markets India and Edelweiss Financial Services are the merchant bankers, while Axis Trustee Services is the trustee for the InvIT, it added. SPGV, a company that was demerged from Vedanta Group firm Sterlite Technologies, was planning an InvIT, making it the first-ever such issue by an Indian power sector firm.
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).