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