IndiGrid issue oversubscribed nearly 25 times; to close five days ahead of schedule on Friday

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IndiGrid issue oversubscribed nearly 25 times; to close five days ahead of schedule on Friday

Infrastructure investment trust IndiGrid’s public issue of non-convertible debentures to raise up to Rs 1,000 crore will close on Friday, five days ahead of the scheduled closure as the issuance has received an overwhelming response.

The issue, which opened on Wednesday, was oversubscribed nearly ten-fold within hours of opening. According to the latest data on BSE, the issue is oversubscribed nearly 25 times.

The Allotment Committee constituted by the Board of Directors of the Investment Manager on behalf of IndiGrid has, by way of a resolution dated April 28, approved the early closure of the tranche 1 issue on April 30, 2021, as per a BSE filing.

Application forms for the NCDs (Non-Convertible Debentures) will be accepted only between 10 am and 3 pm and uploaded until 5 pm or such extended time as may be permitted by BSE and NSE on April 30, it added.

IndiGrid’s NCDs issue base size was Rs 100 crore with a green shoe option of additional Rs 900 crore.

According to the latest data, bids were received for 2,46,83,527 NCDs against the 10,00,000 NCDs of Rs 1,000 each on offer with a green shoe option of 90,00,000 NCDs. The issue was scheduled to close on May 5.

IndiGrid’s MD & CEO Harsh Shah told PTI that while the issue is still open. the initial response as per the preliminary exchange information is very heartening. ”Despite this being the first-ever public NCD issuance, we have received an overwhelming response for our maiden issue with an oversubscription of over Rs 2,400 crore on the first day itself,” he noted.

”The issue has seen interest from various categories of investors, including insurance companies, which were very recently allowed to subscribe to debt securities of InvITs. The successful closure of this issue will open another source of long-term financing for IndiGrid as we have seen over 70 per cent of demand in the longer tenor series in this issue,” he added.

The issue is for four different categories of investors — financial institutions, companies, high net worth individuals and retail investors.

Earlier this month, the Insurance Regulatory and Development Authority (IRDA) allowed insurance firms to invest in debt securities of infrastructure and real estate investment trusts.

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