IndiGrid, a listed infrastructure investment trust (InvIT), backed by global investors such as GIC and KKR, aims to build an asset under management of around Rs 30,000 crore by 2022, buoyed by the monetisation opportunities of power transmission projects in the country.
IndiGrid’s current assets under management is around Rs 13,500 crore, meaning it aims to double assets in just two years. This includes projects in 14 states, including in Bengal.
“Around Rs 6,000-7,000 crore worth of assets are in the pipeline for which we have exclusive agreements in place and over the next two years, our ability to find another Rs 10,000 crore is not a daunting task. The market is good and there is sufficient appetite,” said Harsh Shah, chief executive officer, IndiGrid.
According to estimates, there is a potential to monetise assets worth Rs 45,000-60,000 crore of central and state power transmission firms and investment through the InvIT route would allow a wider participation of both domestic and overseas institutional investors as well as retail investors.
At least two government bodies in the infrastructure space have already announced their intention to tap the InvIT route for asset monetisation.
The Union cabinet committee on economic affairs had last month approved the first lot of monetisation of the assets of Powergrid through the InvIT route with gross block value of around Rs 7,000 crore. In July, the NHAI had announced plans to set up an InvIT.
InvITs and REITs have raised equity of around Rs 40,000 crore with assets under management worth over Rs 1,15,000 crore over the last three years across roads, power transmission, real estate and telecom assets.
While the segment has seen several policy changes over the past few years, there are a couple of areas where companies and investors are in favour of regulatory intervention.
The first change relates to the trading lot size. Although Sebi has lowered the trading lot size to Rs 1 lakh, sources said that there is scope for further reduction.
Moreover, insurance companies and pension funds should be allowed to subscribe to the debt securities.
