Power Grid Corporation of India Ltd (PGCIL) has monetized Rs.2,736.02 crore by way of sale of five of its special purpose vehicles to Powergrid Infrastructure Investment Trust (PGInvIT).
Here is a step-by-step account:
- The following five SPVs were sold to PGInvIT. These five assets are collectively referred to as “Initial SPVs”:
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- Powergrid Warora Transmission Ltd
- Powergrid Parli Transmission Ltd
- Powergrid Jabalpur Transmission Ltd
- Powergrid Kala Amb Transmission Ltd
- Powergrid Vizag Transmission Ltd
- PGCIL has transferred 74 per cent of its holding in each of these five Initial SPVs to PGInvIT
- PGCIL’s holding in each of these Initial SPVs now stands reduced to 26 per cent. These Initial SPVs that were earlier wholly-owned subsidiaries of PGCIL now cease to be even subsidiaries of PGCIL.
- In lieu of the 74 per cent equity in each of Initial SPVs, PGInvIT has allotted 410,650,900 (roughly 410 million) units to PGCIL
- Out of these 410,650,900 units allotted by PGInvIT to PGCIL, 136,500,100 (roughly 136.5 million) units will remain locked-in.
- These 136,500,100 units represent 15 per cent of the total outstanding units of PGInvIT, post issue (see note)
- PGCIL has sold the units (other than those locked-in) under an offer for sale (OFS). Under this, PGCIL received an amount of Rs.2,736.02 crore. The number of units sold under OFS works out to around 274 million. (The units were sold at Rs.100 apiece.)
- The units of PGInvIT were listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), on May 14, 2021. The total number of units allotted by PGInvIT is around 910 million (274 million under PGCIL’s OFS and the remaining 636 million as a fresh initial public offering). The units were listed at Rs.104 per unit, a premium of around 4 per cent over the issue price.
Note: According to InvIT regulations, PGCIL will, at any point in time from the date of listing, hold a minimum of 15 per cent of the total number of units issued by PGInvIT. As on the date of listing, around 910 million units of PGInvIT were allotted and 15 per cent of these, which is 136.5 million units, will be locked-in with PGCIL, as discussed in the story.
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