IPO News

Power Grid to file for $1.1 billion InvIT IPO – Check out more

The Power Grid Corporation of India is a government owned electricity transmission company. It has filed a DRHP with a purpose of monetizing assets and raise around Rs 8,000 crore via Infrastructure investment trust route.

The company has recently filed its draft red herring prospectus with SEBI. If the plan gets finalized then it will become the first IPO of a state regulated or state-owned firm.

It would however come in the limelight even more because, it will take place in such a time period where the country is already enduring a lot of shortfalls.

The government of India is already incurring 2.1 lakh crore disinvestment target.

Moreover, this will be a public InvIT which will help power grid to open the value and secure funds. This will help in securing investments directly for transmission of network expansion.

This initial public offering will further help in reducing the debt from the listed or public company’s book and will transfer it to InvIT.

The InvIT will raise fresh capital in the IPO and simultaneously will shear the entire debt amount.

Also, the entire event has been approved by Prime Minister Narendra Modi. The Cabinet Committee on Economic affairs in the presence of Prime Minister Narendra Modi has approved it on September 8, 2020.

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