PowerGrid InvIT IPO receives 59% subscription on second day

Indian government electricity board PowerGrid Infrastructure Investment Trust's (PowerGrid InvIT) IPO has received 59% subscriptions at the end of the second day of the bidding process.

The Maharatna PSU's InvIT IPO opened on April 29 at a price range of Rs 99 to Rs 100. The company plans to raise Rs 7,735 crore through a fresh issue of up to Rs 4,993.5 crore and existing investors offering units worth up to Rs 2,741.5 crore. On the first day of subscription, the offer was subscribed 10% as the issue received bids for 4,32,42,100 units against 42,54,25,000 units on offer. The institutional investors category was subscribed 3%, while those for other investors were 19%.

On the second day, the issue received a 59% subscription. By the end of the day on April 30, the issue had received bids for 25,17,42,700 units out of the 42,54,25,000 units on offer for subscription.

The initial share sale is being done through the book-building process, around three-fourths of this will be allotted to institutional investors. Of this, 60 % has been reserved for anchor investors. Not less than 25% of the offer will be allotted on a proportionate basis to non-institutional investors, subject to valid bids being received at or above the offer price.

This is the first-ever infrastructure investment trust offering by a state-owned company in India and will be the third InvIT to be listed on Dalal Street.

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Also read: Tata Power cancels energy InvIT deal with Malaysia’s Petronas

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