India Grid Trust (IndiGrid), an Infrastructure Investment Trust (InvIT) sponsored by billionaire Anil Agarwal-promoted Sterlite Power Grid Ventures (SPGV), will invest the proceeds in the initial projects of its two special purpose vehicles (SPVs). The company, according to SEBI regulations, will use nearly ₹1,600 crore to repay project loans.
SPGV, which had fixed a price band of ₹98-100 a unit for its proposed initial share sale, is now planning to raise ₹2,250 crore through the InvIT, making it the first issue by an Indian power sector firm. The InvIT will open on May 17 and close on May 19. Bids can be made for a minimum of 10,205 units and thereafter in multiples of 5,103 units.
The investment will be made in two SPVs — Bhopal Dhule Transmission Company and Jabalpur Transmission Company — which have a total of 1,936 cubic km (ckm) and two sub-stations with 6,000 MVA of transformation capacity, said Pratik Agarwal, CEO, IndiGrid.
An independent power transmission company, SPGV owns 11 inter-State power transmission projects with a total network of 30 power transmission lines of about 7,733 ckm and nine sub-stations with 13,890 MVA transformation capacity. Many of these projects have been fully commissioned, while others are at various 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).