Sterlite Power Grid’s InvIT IPO planned for mid-May launch

Sterlite Power Grid Ventures is looking to raise around Rs2,650 crore through its InvIT India Grid Trust’s initial public offering (IPO)


India Grid Trust, the InvIT of power transmission lines firm Sterlite Power Grid, filed its red herring prospectus with Sebi on Tuesday. Photo:
India Grid Trust, the InvIT of power transmission lines firm Sterlite Power Grid, filed its red herring prospectus with Sebi on Tuesday. Photo:

Mumbai: India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Ltd plans to launch an initial public offering (IPO) in mid-May, said two people familiar with the company’s plans on condition of anonymity.

InvITs are trusts that manage income-generating infrastructure assets, offering investors regular yields and a liquid way to invest in infrastructure projects.

Sterlite Power Grid filed the draft offer documents for the InvIT in December. The company owns power transmission assets in India.

On Tuesday, IRB Infrastructure Developers Ltd said it would be launching a public offering for its InvIT on 3 May.

IRB’s public offering will be the first such in the country. IRB plans to raise Rs5,035 crore.

Sterlite is looking to raise around Rs2,650 crore through the share sale in India Grid.

“The company has been in advanced talks with investors for the public offering and there is ample demand for the offering. The plan is to launch the offering sometime in second or third week of May,” said one of the two people mentioned in the first instance.

On Tuesday, the company filed its red herring prospectus with markets regulator Securities and Exchange Board of India (Sebi), the person added.

A spokesperson for the company did not respond to emails seeking comment.

According to the company’s website, Sterlite Power Grid has a portfolio of 10 projects, spanning 7,000 circuit kilometres in 15 states, entailing an investment of about $2 billion.

InvITs are expected to encourage higher foreign investment in India’s infrastructure sector, reduce the burden on bank funding and allow developers to unlock tied-up capital.

In May 2016, Sebi released norms for public issue of units of InvITs.

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.

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