Mumbai: India Grid Trust, an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Ltd, on Thursday saw its initial public offering (IPO) subscribed 16%.
InvITs are trusts that manage income-generating infrastructure assets, offering investors regular yields and a liquid way to invest in infrastructure projects.
According to data from stock exchanges, the portion of the share sale reserved for institutional investors was subscribed 8%, while that for non-institutional and high net-worth individuals (HNIs) was subscribed 26%.
The offering closes on 19 May.
Sterlite has priced the trust’s units at Rs98-100 per unit for the initial share sale. Sterlite aims to raise Rs2,250 crore through the IPO of the InvIT.
“We have seen a strong response from our anchor investors comprising both global and domestic funds. The key reason is that power transmission is considered one of the safest asset class within the infrastructure sector,” a spokesperson for India Grid said.
On 16 May, India Grid Trust raised Rs1,012.4 crore as part of its anchor book allocation. institutional investor interest.
India Grid’s anchor book saw participation from foreign institutional investors such as Deutsche Global Infrastructure Fund, Future Fund Board of Guardians managed by Rreef America LLC, Driehaus Emerging Markets Small Cap Growth Fund and Jupiter South Asia Investment Co. Ltd.
Domestic investors which subscribed to the book included Edelweiss Tokio Life Insurance Co. Ltd, Reliance Nippon Life Insurance Co. Ltd and Reliance General Insurance Co. Ltd.
Units of the trust were allotted to a total of 19 institutional investors at Rs100 per unit.
Morgan Stanley India Co. Pvt. Ltd, Citigroup Global Markets India Pvt. Ltd and Edelweiss Financial Services Ltd are the lead managers of the India Grid IPO.