PowerGrid Infrastructure Investment Trust (InvIT) shares had a very quiet debut today morning – it got listed at Rs.104 v/s IPO price of Rs.100.
The IPO struggled to get the required response and it was on the last day that it was subscribed 4.83 times. This was thanks to the support from institutional investors, which saw a subscription of 4.63 times and other investors 5.07 times.
In our New Issue Analysis, we had said, “While InvITs went off to a slow start, their adoption has improved pursuant to regulatory changes, with IndiGrid on boarding foreign owners and rewarding unit holders well. FY22 budget has clearly spelt out Govt’s intent to monetize income generating assets through InvIT/REIT route, indicating greater future adoption, although present tax structure makes them more suited for institutional investors.”
We had concluded, “Retail and HNI investors, especially in the lower income bracket, and looking to take fixed income exposure may apply to the issue, as the yields are attractive and scope for listing gain also exists.”