First government company Power Grid Corporation may bring in IPO by March; plans to raise 8000 crore

Power Grid Corporation, the state-run electricity transmission company, has plans to launch an Infrastructure Investment Trust (InvIT) IPO. The company has filed draft Red Hearing Prospectus (DRHP) with SEBI for this. Through this, the company will raise 8 thousand crore rupees. Power Grid’s stock is currently trading at Rs 192. Its market cap is one lakh crore rupees.

Government will get help

It is the first state-run company to launch an InvIT. If this IPO is successful, it can help the government. The government has set a target of raising Rs 2.10 lakh crore in this financial year. This government-initiated issue will give the power grid an opportunity for new investment in the expansion of the transmission network. With this amount of InvIT, the company can also plan to reduce debt.

Pension fund showed interest

The pension fund and sovereign fund have shown interest in the power grid deal. The proceeds from the IPO will go to the power grid and it will decide what will be done. Also, the company can give dividends. Explain that Power Grid is already a listed company in the market. The lead managers of this IPO are ICICI Securities, Edelweiss and HSBC Securities.

IPO may come by March

This InvIT is expected to be launched in March. In September last year, the Cabinet Committee on Economic Affairs approved a plan for asset monetization of the power grid. Under this monetization, the company will first focus on high voltage transmission line and sub-station.

Many private sector IPOs have come up.

So far Indi Grid InvIT, IRB Infra InvIT IPOs have come in the private sector. InvIT is basically a collective investment scheme. It is similar to a mutual fund. It raises money from people and invests this money in the Infra project. Investors benefit from this investment.