Can you tell me about Power Grid INVIT IPO coming later this month?

Power Grid will launch the first ever INVIT IPO by a PSU company on the 29 April. This IPO will also contribute richly to the government’s disinvestment target of Rs.175,000 crore for the current fiscal year. INVIT is a pool of infrastructure assets held like a MF and benefits distributed. However, unlike REITs, it has more features of debt.

The IPO size is pegged at Rs.7,700 crore and the indicative price band will be announced on 29 April. This will be a test case for the government if the INVIT route can be employed to monetize government state assets. Reportedly, pension funds, long-only managers and domestic mutual funds had evinced interest; apart from most of the insurers.