First State-Owned InvIT To List On Bourses On May 17: Here's What To Expect From Its Listing

The first InvIT (Infrastructure Investment Trust) IPO by a state owned entity, Power Grid, will see the listing of its shares on the bourses on May 17. The IPO offer of Power Grid InvIT ran between April 29 and May 3, 2021 included a fresh issue of shares worth Rs 4,993.48 crore and an offer for sale (OFS) to the tune of Rs 2,741.50 crore by selling shareholders. It was sold in the price band of Rs 99-100 per unit. The issue received robust response owing to government backing.

On the last day of subscription, the Power Grid InvIT issue was subscribed 4.83 times. The Rs. 7735 crore IPO received bids to the tune of 205 crore units as against 42 crore units that were on offer. The portion reserved for the institutional investors was subscribed 4.63 times and other investors 5.07 times.

The Powergrid infrastructure Investment Trust is newly set up and as such it does not have any established operating history which makes it difficult to analyse the future growth prospects, told an analyst to a leading business daily.

What to expect from Power Grid InvIT IPO Listing?

Even though the Indian stock market in the days to come will more or less mirror the trend in the global stock market which fears rollback of stimulus by the US amid high inflation, Abhay Doshi, founder of UnlistedArena.com that deals in IPO and unlisted shares told a leading business daily that "the instrument being suitable for long term investors may not see considerable gains/losses on listing". "However, the sponsor has a 'Maharatna' status from GoI. Also, PGIT has stable credit ratings from leading agencies", he added.

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