Powergrid InvIT IPO Reviews, Dates, Price Band, Market Lot & Financial Details.

After some breaks in IPO listings, we are seeing a little innovative which is Powergrid InvIT IPO.

Yes, Powergrid’s Infrastructure Investment Trusts (InvIT) IPO is not similar to other normal IPOs. It is the first InvIT sponsored by the state government.

Through this IPO Powergrid InIT Infrastructure Investment Trusts is looking to raise Rs 7,735 crore by fresh issue as well as offer for sale (OFS). It is the 3rd company after IndiaGrid Trust and IRB InvIT to trade on NSE and BSE in some days. Many IPOs are going to launch this year check here the list.

Powergrid InvIT IPO Dates & Price Band:

Open date29th April 2021
Close date03rd May 2021
Total Size of IPO₹7,734.99 Cr.
Fresh Issue ₹4,993.48 Cr.
Offer for Sale₹2,741.51 Cr.
Price Band₹99 – 100 per unit
Face Value
Listing onNSE and BSE
Retail Investor’s Portion25%

Powergrid InvIT IPO Market Lot:

ApplicationLotSharesCut Off Amount
Minimum (RII)11100₹110,000
Maximum (NII)11100₹110,000

Should you subscribe to Powergrid InvIT IPO?

Strengths:

  • Can give stable consistent returns due to long-term visibility of projects and low risk.
  • The company has strong financials.
  • The InviIT is backed by Powergrid Corporation of India which is a government firm.
  • It has strategic and critical nature of power transmission with low risk

Weakness:

  • Debt to equity ratio is high – more than 3%

Verdict – If you are investing profile is low risk then you must go for the Powergrid InvIT IPO as it assures you 90% of net cash income every quarter and also it is sponsored by government firm i.e. Powergrid Corporation of India.

Powergrid InvIT IPO Allotment & Listing Dates:

Allotment Date for Powergrid InvIT – 10th May 2021
Refund Date for Powergrid InvIT – 11th May 2021
Credit of Shares to Demat Account – 11th May 2021
Listing Date for Powergrid InvIT – 17th May 2021

Objectives of Issue:

  • To finance new project’s working requirements.
  • To repayment or prepayment of debt .
  • To meet general corporate issues.

Applying Powergrid InvIT IPO through the form: 

Besides applying IPOs through ASBA application or through Demat accounts you can also apply to IPOs with the help of forms provided by NSE or BSE. This is one of the traditional and safe ways to apply for an IPO subscription. Download the form through this link and fill the form carefully. You have to submit your filled form to the bank or broker.

Financials of Powergrid InvIT IPO:

YearRevenue (₹ in Cr.)Expense (₹ in Cr.)Net Income (₹ in Cr.)
2018345.6217.1114.1
2019984.1636.1248.1
20201,334.1846.7378.8

About Powergrid’s InvIT

The Powergrid InvIT is set up to construct, maintain, invest and operations of power transmission projects in India. This InvIT is sponsored by Maharashtra’s PSU Powergrid Corporation of India. Powergrid InvIT is willing to give 90% of their net cash to their shareholders/unitholders once every quarter. But the first transaction will take place after 6 months of the listing date and trading of units.

Initially, Powergrid InvIT IPO has five projects in their portfolio –

  1. PowerGrid Vizag Transmission
  2. PowerGrid Kala Amb Transmission Limited
  3. PowerGrid Parli Transmission Limited
  4. PowerGrid Warora Transmission Limited
  5. PowerGrid Jabalpur Transmission Limited.

Powergrid InvIT has got AAA ratings by rating agencies like CRISIL, ICRA, etc.

Frequently Asked Questions on Powergrid InvIT IPO

When will Powergrid InvIT IPO open for Investors?

Powergrid InvIT IPO will open on the 29th April 2021 and will close on the 03rd of May.

What is Powergrid InvIT IPO Retail Portion?

The portion allocated for retail investors in Powergrid InvIT IPO is 30%

How to apply for Powergrid InvIT IPO?

You can apply Powergrid InvIT IPO in 3 ways:
Open a Demat account through a bank or brokerage firm and apply through it.
Apply via ASBA application online through your bank.
Fill up the offline IPO form and submit it to the bank or broker.

Should I invest in Powergrid InvIT IPO?

If you are investing profile is low risk then you must go for the Powergrid InvIT IPO as it assures you 90% of net cash income every quarter and also it is sponsored by government firm i.e. Powergrid Corporation of India.

What is the allotment date for Powergrid InvIT IPO?

10th May 2021 is the allotment date for Powergrid InvIT IPO.

What is the listing date for Powergrid InvIT IPO?

17th May 2021 is the listing date for Powergrid InvIT IPO. It will be listed on NSE and BSE.

What is the cutoff price for Powergrid InvIT IPO?

The cutoff price for Powergrid InvIT IPO is ₹100.

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