Mumbai: State owned power transmission company Power Grid Corp of India Ltd has filed the draft IPO papers for its first infrastructure investment trust (InvIT) – Powergrid Infrastructure Investment Trust.
This will be the first time a state owned entity is monetizing its infrastructure assets through the InvIT route. This will also be only the third InvIT to be listed in the Indian markets, after IRB InvIT and India Grid Trust both of which went public in 2017.
An infrastructure investment trust is a quasi debt instrument that provides investors with a steady yield derived from cashflows from operating infrastructure projects such as roads, transmission lines or renewable energy projects. Publicly traded InvITs, like the one proposed by Power Grid can also offer an equity upside to investors.
