India Grid Trust files DRHP with SEBI for Rs 2650 crore IPO

An infrastructure investment trust (InvIT), India Grid Trust has filed a draft red herring prospectus (DRHP) with the capital market regulator SEBI for a proposed initial public offer (IPO) for an amount up to Rs 2,650 crore.

The investment trust, which is sponsored by Sterlite Power Grid Ventures Ltd., owns inter-state power transmission assets in India. Sterlite Infra Ventures Ltd., is the investment manager of IndiGrid, while Axis Trustee Services Ltd., is the trustee.

The issue will constitute at least 25 per cent of the outstanding units of IndiGrid on a post-issue basis and 75 per cent of the issue shall be available for allocation on a proportionate basis to institutional investors.

InvITs are trusts that manage income-generating infrastructure assets, typically offering investors regular yields and a liquid way to invest in infrastructure projects. InvIT offers an opportunity for promoters to sell their stake in completed projects to the trust, which in turn can raise long-term and tax-free funds from unit holders.

Proceeds from the listing of IndiGrid will be used to repay debt and for other corporate purposes.

The units of IndiGrid are proposed to be listed on the NSE and BSE. Morgan Stanley India, Citigroup Global Markets and Edelweiss are the lead managers to the issue.