PowerGrid InvIT - Monetisation Plans Set To Take Off: Motilal Oswal
High voltage electricity power lines hang from pylons to supply the city grid. (Photographer: Casper Hedberg/Bloomberg)

PowerGrid InvIT - Monetisation Plans Set To Take Off: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The launch of Power Grid’s investment trust marks the start of monetisation plans for its tariff-based competitive projects.

The initial InvIT would house five transmission projects (gross block: Rs 72 billion).

For Power Grid Corporation of India Ltd., the same accounts for 3% of its total gross block and hence the value accretion is not large.

We had valued these five assets at Rs 36 billion.

Against this, we see a potential realised value of Rs 53 billion – Rs 27 billion from offer for sale, Rs 13.7 billion of a 15% stake in InvIT, and ~ Rs 12 billion estimate value for a 26% stake in special purpose vehicles – implying an Rs 3/share accretion.

Click on the attachment to read the full report:

Motilal Oswal PowerGrid Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.