Why you should subscribe to IndiGrid InvIT rights issue
Annual payouts and scope for capital appreciation bode well for investors
India Grid Trust (IndiGrid), the country’s first listed power sector infrastructure investment trust (InvIT), which was set up in 2016, is coming out with a rights issue.
IndiGrid proposes to raise up to ₹1,284 crore via its rights issue that will be open from April 6 to April 13, 2021. Existing unitholders can subscribe to the issue at a price of ₹110 per unit in the ratio of one for five. IndiGrid units are trading at ₹136.25 per unit currently (BSE).
The issue proceeds will be used for acquisition of 26 per cent equity capital of NER Transmission, an inter-state power transmission project, and part repayment of the outstanding external debt. Post the issue, the consolidated debt-to-equity ratio is expected to go down from 0.65 times to 0.58 times.