Should you invest in the Powergrid InvIT IPO?

| Published on 28th April 2021 | 78

Should you invest in the Powergrid InvIT IPO?

The Powergrid InvIT IPO (Infrastructure Investment Trust) has caught the interest of several investors. One of the main reasons for this is that the company is owned by PowerGrid Corporation of India which is run by the state. This article focuses on the company details and financial details of Powergrid InvIT while also providing information about their upcoming IPO.

About the company

Powergrid InvIT was founded on the 23rd of October in the year 1989. It is headquartered in Gurgaon, Haryana, and is associated with the electricity grids industry. Some of the main products of Powergrid InvIT are transmission, distribution, and energy trading. Powergrid InvIT is popularly known for being the largest power transmission company in India. This company is the third publicly-listed InvIT after IndiGrid and IRB InvIT fund. Powergrid InvIT plans to launch its very first InvIT (Infrastructure Investment Trust) on the 29th of April. This marks to be the first launch of such a nature for a company in the government sector.

To start with the functionality of the company, InvIT is a type of collective investment scheme. It is very much similar to that of a mutual fund. The company has offered 5 initial portfolio assets that have a value of Rs. 10,384 Crores for the Powergrid InvIT plan. The other reason behind the launch of the Powergrid InvIT IPO is to provide loans to portfolio assets that can enable the company to repay its debts along with the accumulated interest.

Financials of Powergrid InvIT

The company has strong financials with a revenue of Rs, 38,317.97 Crores as of 2020. The operating income of Powergrid InvIT amounts to Rs. 22,460.97 Crores in 2020. During the same year, the net income was at Rs. 10,811.18 Crores. The total assets and total equity of Powergrid InvIT are Rs. 2,55,549.66 Crores and Rs. 64,439.69 Crores respectively.

Powergrid InvIT IPO details

Before making a decision on whether or not to invest in the Powergrid InvIT IPO, it is essential to know all the details of the Powergrid InvIT IPO that can help you make an informed decision.

Date of Powergrid InvIT IPO 

Powergrid InvIT has its IPO spread out over a span of 19 days. The Powergrid InvIT IPO opened on April 29, 2021. The IPO will allow investors to buy shares of the IPO over a period of 5 days. The Powergrid InvIT IPO will close on May 3, 2021. The shares will be finally allotted on the 10th of May 2021. For those investors that do not have any shares allotted to them, the refund would be initiated on the 11th of May 2021. The credit of shares will also be completed on the same day as that of the refund. At last, the Powergrid InvIT IPO listing will be announced on the 17th of May 2021.

Share Price of Powergrid InvIT IPO

The price band of the Powergrid InvIT IPO  ranges between Rs. 99 and Rs. 100 per share. On the whole, an individual investor will be allowed to place a bid for 1100 shares. This would lead to a minimum capital requirement of Rs. 1,08,900 and a maximum capital requirement of Rs. 1,10,000.

Issue size of Powergrid InvIT IPO 

Through the Powergrid InvIT IPO, the company announced a lot size of 1100 shares. As a retail investor, an individual can apply for 1 lot. This would translate to 1100 shares worth Rs. 1,10,000. Both the minimum and the maximum number of lots that a retail investor is eligible for is 1 lot. The total issue size aggregates to Rs. 7,734.99 Crores whereas the fresh issue aggregates to Rs. 4,993.48 Crores. The offer for sale aggregates to Rs. 2,741.51 Crores.

Conclusion

The Powergrid InvIT IPO can be a promising investment once you gain enough knowledge about both your needs and expectations from the company. In addition, having a detailed understanding of Powergrid InvIT can help you make an informed decision. However, you would require to have an active Demat Account to invest in the IPO and Angel Broking can help you get started. Apply or subscribe to this IPO with Angel Broking.