India Grid Trust - IPO Note - Angel Broking

Views of Mr. Abhishek Lodhiya (Sr. Equity Research Analyst - Infrastructure, Capital goods and Real Estate, Angel Broking):

"IndiGrid was established on Oct, 2016 by Sterlite Power Grid Ventures Limited (Sponsor) and is registered with SEBI pursuant to the InvIT Regulations. Sponsor is one of the leading independent power transmission companies operating in the private sector. Sponsor owns 11 inter-state power transmission projects with a total network of 30 power transmission lines of ~7,733 ckms and 9 substations having 13,890 MVA of transformation capacity. Of the 11 inter-state power transmission projects owned by the Sponsor, IndiGrid will initially acquire 2 projects (Initial Portfolio Assets) with a total network of eight power transmission lines of ~1,936 ckms and two substations having 6,000 MVA of transformation capacity across 4 states."

Investment Rationale:

- Stable cash flows from assets with minimal counter party risks
- Strong financial position
- Rights to Sponsor's pipeline of power transmission projects
- Ownership and location of assets

Source : Equity Bulls

Keywords