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Sterlite Power’s India Grid InvIT falls on stock market debut

06 June, 2017

India Grid Trust (IGT), an infrastructure investment trust (InvIT) sponsored by power transmission asset operator Sterlite Power Grid Ventures Ltd, made a muted stock market debut on Tuesday with its units listing at the initial offering price before slipping into the red.

The units started trading on the BSE at Rs 100 apiece, the same as the issue price. The units fell to a low of Rs 94 within five minutes of opening, down 6% from the issue price. The units closed at Rs 98.45 apiece. The benchmark BSE Sensex ended 0.4% lower.

The lukewarm listing of IGT comes as its IPO struggled to attract investors and managed to sail through on the final day of its offering.

Sterlite Power is the second firm to float an InvIT offering. In early May, IRB launched its InvIT Fund to raise as much as Rs 4,655 crore (around $725 million). IRB InvIT Fund attracted strong investor turnout for its IPO, which was subscribed 8.5 times.

IGT, which owns inter-state power transmission assets, mobilised Rs 2,250 crore through the public issue last month. It was earlier looking to raise Rs 2,650 crore but trimmed the issue size.

The proceeds will be used for repaying loans and general corporate purposes. Sterlite Infraventures Ltd is the trust’s investment manager and Axis Trustee Services Ltd is its trustee.

Sterlite Power is a subsidiary of Sterlite Power Transmission, which was de-merged from Sterlite Technologies Ltd with the latter retaining its telecom business in the listed entity. These entities are owned by billionaire Anil Agarwal-led Vedanta Group.

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Sterlite Power’s India Grid InvIT falls on stock market debut

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