IPO

All you need to know about POWERGRID InvIT IPO 2021 – GMP, Important Dates and More

Power Grid Infrastructure Investment is a newly registered firm with SEBI. The registration is backed to 7th January, 2021. It is a new venture hence there is no financial repent for the same. The company is started with a view to structure the investment and infrastructure business of the PGCIL company. PGCIL is Powergrid itself. It is the parent company of InvIT. It is the largest transmission company of India. InvIT works to fiance, Own or construct any project and even maintain multiple project sites. However PGCIL deals into project designing and development work along with maintaining and running the power transmission plants in India.

The investment Partner in InvIT is Unchahar Transmission Limited of Powergrid. The debenture trustee assigned to the firm is IDBI Trusteeship services Limited.

IPO DETAILS

The IPO is set to get launched on 29th April, 2021. The subscription timeline extends till 3rd May, 2021. The size for POWERGRID InvIT IPO is 7734.99 Crore Rs. Shares issued through Offer for sale are 2741.51 Crore Rs. Shares worth 4993.48 Crore Rs are issued through Fresh issue. The minimum lot size is 1100 shares and the price is set at 99 Rs. – 100 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. This is a book built issue and the F.V. is 10 Rs per share. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

DATE FOR IPO OPENING	April 29th, 2021
DATE FOR IPO CLOSING	May 3rd, 2021
TYPE OF ISSUE	Book Built Issue
IPO price band	99 Rs – 100 Rs per share
FACE VALUE PER SHARE	Rs. 10 per share
LOT SIZE	1100 shares
MINIMUM ORDER QUANTITY	1100 shares
ISSUE SIZE	7734.99 Crore Rs.
OFFER FOR SALE	2741.51 Crore Rs.
FRESH ISSUE	4993.48 Crore Rs.
LISTING AT	BSE, NSE
LISTING DATE	17th May, 2021

IMPORTANT DATES

DATE FOR IPO OPENING	April 29th, 2021
DATE FOR IPO CLOSING	May 3rd, 2021
IPO ALLOTMENT DATE	May 10th, 2021
REFUNDS	May 11th, 2021
SHARES T/F to DEMAT A/c	May 11th, 2021
DATE FOR IPO LISTING	May 17th, 2021

The IPO begins for subscription from 29th April, 2021. The IPO subscription would continue till 3rd May, 2021. The allotment status for the shareholders who applied would come on 10th May, 2021. The refunds for the ones who did not get allotment would be initiated on 11th May, 2021. The DEMAT accounts of shareholders would be credited on 11th May, 2021. The listing of the company would be accompanied on 17th May, 2021.

LEAD MANAGERS

The lead managers for the company are :

HSBC Securities and Capital Markets Limited
Axis Capital limited
ICICI Securities Limited
Edelweiss Financial Services Limited

LOT SIZE DETAILS

The lot size decided for POWERGRID InvIT IPO is as follows :

The minimum lot size decided is 1100 Shares per lot. The amount behind this subscription is 110000 Rs. Hence the minimum investment for subscription is 110000 Rs. The maximum subscription amount is also the same. Hence there is one minimum as well as maximum lot size available to invest.

	No. of lots and total shares	Amount
Minimum	1 (1100 shares)	110000 Rs.
Maximum	1 (1100 shares)	110000 Rs.

OBJECTIVES FOR THE IPO

The major objectives include :

Providing the Initial portfolio assets with loans. The company wants to get cheap loans with low interest payments. Hence the parent company and the InvIT will not get benefited with this money inflow.
The company also wants to pay off the debts with this money. The company has a significant debt amount that compels it to pay for more interest. With the payment of debts the company can save in interest payable amounts.
This money can be provided towards fulfilling the general corporate purposes.

PROS

It is a new set up from the POWERGRID InvIT for development of infrastructure projects. Hence this gives the company a fresh start with no red flags of the past.
The company is managed by POWERGRID which has significant expertise in the transmission and infrastructure business already.

CONS

Money for payment of debts that the group has which is not a good sign for a company established in the last 4 months.
There is only one lot size available hence small investors may not be able to invest. The GMP is not available but there are chances on the basis of its lot size that many retail investors may back out and the company may open up in red.