PowerGrid InvIT IPO subscription status: PowerGrid InvIT IPO subscribed 18% so far on Day 2

NEW DELHI: Subscription for the IPO of the infrastructure , sponsored by the , grew gradually on the second day of the bidding process on Friday. The issue has been subscribed 18 per cent so far. Till 12 noon on Friday, the issue received bids for 7,86,07,100 units out of the 42,54,25,000 units on offer for subscription.

The InvIT has been touted as a good long-term option for investors looking for assured 10-12 per cent returns as analysts expect the InvIT to comfortably generate that much yield annually.

The infrastructure trust is a first of its kind offering by a state-owned entity in India and is priced at Rs. 99-100 per unit. Power Grid InvIT is looking to raise Rs 7,735 crore through the issue which includes a fresh issue as well as an offer for sale from the sponsor.

The infrastructure trust plans to acquire five projects initially from Power Grid with a total network of 11 power transmission lines of 3,698 km and three substations having 6,630 MVA of aggregate transformation capacity across five states in India.

Analysts say investors can subscribe to the issue as it offers prospects of lucrative and consistent yields. “The product offers stability in cash flow, low counterparty risks, strong lineage of Power Grid Corporation and growth from future acquisition of projects. This coupled with replacement of Power Grid Corporation debt via IPO proceeds implies the InvIT will start out as debt-free,” said Rupesh Sankhe of

Securities.