Sterlite seeks Sebi nod to raise Rs 2,650 crore via InvIT

IndiGrid, a recently-floated infrastructure investment trust (InvIT) by Sterlite Power Grid Ventures, has filed Draft Red Herring Prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) to raise Rs 2,650 crore through its.  

“This Issue will constitute at least 25% of the outstanding units of IndiGrid on a post-issue basis,” read a statement by IndiGrid. “Not more than 75% of the issue shall be available for allocation on a proportionate basis to institutional investors,” mentioned the statement. Investment managers may allocate up to 60% of it to anchor investors.

Last month, Sebi granted approval to Sterlite Power Grid Ventures to launch InvIT - IndiGrid - to raise money.

Morgan Stanley, Citigroup Global Markets and Edelweiss Financial Services are the lead managers for the IPO.

Crisil, a leading research and rating agency, has issued credit rating of AAA, whereas according to India Ratings the issue is “AAA / Stable” and “IrAAA” by Icra. It will be listed on National Stock Exchange as well as BSE.

IndiGrid is among the first few InvITs to get approval from the market regulator - Sebi. For the infrastructure companies and promoters, InvIT offers an opportunity to sell their stake in completed projects to the trust, which in turn can raise long-term and tax-free funds from unit holders.

Sterlite Power Ventures has 10 inter-state power transmission projects with a total network of 29 power transmission lines.