IndiGrid sets band of Rs 98-100 for IPO

IndiGrid sets band of Rs 98-100 for IPO

India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT) established to own inter-state power transmission assets in India, has set a price band of Rs 98-100 per unit for its initial public offering.

According to the company, a majority of the proceeds will be utilised to repay project loans. Sterlite Power Grid Ventures and Sterlite Investment Managers are the sponsor and investment manager, respectively of IndiGrid which is planning to raise up to Rs 2,250 crore. The issue opens on May 17 and closes on May 19. Bids can be made for a minimum of 10,205 units and in multiples of 5,103 units thereafter. Morgan Stanley India Company, Citigroup Global Markets India and Edelweiss Financial Services are the lead managers to the issue.

IndiGrid owns inter-state power transmission assets in 11 states. The sponsor, Sterlite Power Grid Ventures, is one of the leading independent private sector power transmission companies operating across the country.

It owns 11 inter-state transmission projects with a total network of 30 transmission lines of around 7,733 circuit km and nine substations having 13,890 MVA of transmission capacity. These two assets have a debt burden of over Rs 2,300 crore as per the DRHP, out of which it plans to retire close to Rs 1,000 crore from the IPO proceeds.

Some of these projects have been fully commissioned, while others are at different stages of development. Of the 11 inter-state transmission projects, IndiGrid will initially acquire two projects — Bhopal Dhule Transmission Co and Jabalpur Transmission Co — with a total network of eight transmission lines of around 1,936 circuit km and two substations having 6,000 MVA capacity across four states, the company said.

In accordance with InvIT regulations, the trust has to distribute at least 90% of net cash available for distribution to unit-holders at least twice a year.

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