28 C
Kolkata
Saturday, May 15, 2021

Modest debut for PowerGrid InvIT, closes at 2.98% above issue price of Rs 100 on BSE

Facebook
Twitter
Pinterest
WhatsApp


PGCIL is seeking to monetise some of its transmission assets through PGInvIT, which will contribute to the government’s asset monetisation programme.

On its maiden day of trading, shares of PGlnvlT, the infrastructure investment trust (InvIT) sponsored by state-run electricity transmission utility Power Grid Corporation of India (PGCIL), closed at 2.98% above the issue price of Rs 100 on the BSE.

It reached the highest point of 4.97% premium in the day, while the lowest was 2.84%. The closing price of Rs 102.98 was, in fact, 0.98% lower than the opening price of Rs 104 per share. PGCIL is seeking to monetise some of its transmission assets through PGInvIT, which will contribute to the government’s asset monetisation programme. At Friday-end, PGInvIT’s market capitalisation was at Rs 9,371.2 crore.

This is the first time a PSU in the power sector has monetised its assets through the InvIT model. After the Cabinet approved the monetisation of PGCIL assets in September 2020, the company had transferred 74% of its shareholding in five operational transmission systems in the InvIT.

PGCIL’s chairman and managing director K Sreekant had said earlier that as many as 18 other transmission projects worth Rs 22,500 crore being built by the company through the tariff-based competitive bidding route could also be monetised in due course through PGInvIT.

The initial public offer was opened on April 29 and closed on May 3. The InvIT will be distributing 90% of the net cash available for distribution to unitholders once every quarter in every financial year. All assets under PGInvIT have 35 years of transmission service agreement with their respective customers, and their revenue flows are insulated from demand, supply and price fluctuation of power tariff. Analysts had pointed that the InvIT could provide yield of 11–12% in initial years.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.





Source link

Facebook
Twitter
Pinterest
WhatsApp
Avatar
NEWS EDITOR
News Editor - Breaking News Exchange is mainly to inform the public about events that are around them and may affect them. Often news is for entertainment purposes too; to provide a distraction of information about other places people are unable to get to or have little influence over. News can make people feel connected too.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

578FansLike
624FollowersFollow
144SubscribersSubscribe
- Advertisement -

Latest Articles