PowerGrid InvIT to Open on April 29; What is an InvIt?

By Aditya Raghunath

Investing.com — Power Grid Corporation of India Ltd (NS:)’s (PGCIL) PGInvIT (Power Grid Investment Trust) is set to launch its IPO on April 29, at an issue price of Rs 99 to Rs 100. PGCIL wants to monetize some of its assets through its investment trust.

The assets that come under the PGInvIT are PowerGrid Warora, PowerGrid Jabalpur, PowerGrid Vizag, PowerGrid Parli and PowerGrid Kala Amb.

What is an InvIT?

An InvIT is an investment trust, akin to a mutual fund, where it holds a portfolio of infrastructure assets that bring in revenue through payments. An investor, when they subscribe to an InvIT becomes a part-owner of this portfolio. This is similar to a mutual fund where (in case of an equity mutual fund) subscribers own part of a company.

What is PGCIL monetizing in its InvIT?

PGCIL is monetizing its power substations and its transmission lines. This is the first time that a government-owned company is using the InvIT route for monetization.

Apart from the assets mentioned in the start of the report, PGCIL Chairman and Managing Director K Sreekant said that 18 transmission projects worth Rs 22,500 being built by it can also be monetised in due course through PGInvIT.

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