IPO Review: IndiGrid's InvIT is high on stability but low on yield

Backed by SPG, it may offer investors an opportunity to directly participate in power T&D theme

Hamsini Karthik  |  Mumbai 

Being the second to list its investment trust (InvIT) and the first in the power transmission segment, IndiGrid's initial public offering (IPO) is interesting. Backed by Sterlite Power Grid Venture (SPG) as the sponsor, IndiGrid may offer investors an opportunity to directly participate in India's power transmission and distribution (T&D) theme. Ambit Capital in its report mentions that InvITs in the T&D space may be a better bet among listed companies given the limitation of capital misallocation that can take place under the InvIT structure. Operations Assets of ...

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IPO Review: IndiGrid's InvIT is high on stability but low on yield

Backed by SPG, it may offer investors an opportunity to directly participate in power T&D theme

Being the second to list its investment trust (InvIT) and the first in the power transmission segment, IndiGrid's initial public offering is interesting. Backed by Sterlite Power Grid Venture (SPG) as the sponsor, IndiGrid may offer investors an opportunity to directly participate in India's power transmission and distribution (T&D) theme. Ambit Capital in its report mentions that InvITs in the T&D space may be a better bet among listed companies given the limitation of capital misallocation that can take place under the InvIT structure. OperationsAssets of IndiGrid would be derived from its sponsor SPG, which is among the leading independent power transmission companies in the private sector. It owns 11 inter-state power transmission projects having a total network of 30 power transmission lines (7,733 circuit kilometres or ckms) and nine substations having 13,890 mega volt amps (MVA) of transformation capacity. Out of the 11 projects, SPG would transfer two projects to ... Being the second to list its investment trust (InvIT) and the first in the power transmission segment, IndiGrid's initial public offering (IPO) is interesting. Backed by Sterlite Power Grid Venture (SPG) as the sponsor, IndiGrid may offer investors an opportunity to directly participate in India's power transmission and distribution (T&D) theme. Ambit Capital in its report mentions that InvITs in the T&D space may be a better bet among listed companies given the limitation of capital misallocation that can take place under the InvIT structure. Operations Assets of ... image
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