India Grid Trust makes tepid debut

Shares end 1.5% lower to close at Rs 98.45 on the BSE

Shares of India Grid Trust made a tepid debut at the bourses on Tuesday.

The stock, opened at Rs 100 on the BSE, later tanked six per cent to Rs 94 in intra-day. It finally closed at Rs 98.45, down 1.55 per cent. On the National Stock Exchange (NSE), shares of the company fell 1.36 per cent to close at Rs 98.64. On the volume front, 5.02 million shares of the company were traded on the BSE and over 20 million shares changed hands on the NSE during the day.

The company, which last month concluded its Rs 2,250-crore initial public offering (IPO), commands a market valuation of Rs 2,660.12 crore.

The IPO of India Grid Trust, second in the infrastructure investment trusts (InvIT) space, was subscribed 1.35 times, with the institutional investors category getting subscribed 1.14 times and other investors 1.60 times.

The price band for the offer, which was open during May 17-19, was set at Rs 98-100 per unit.

Morgan Stanley India, Citigroup Global Markets India and Edelweiss Financial Services were the lead managers to the issue.

InvITs are debt instruments that are traded in the market and act as investment vehicles for sponsors. The listing of instruments enable promoters in infrastructure space to monetise completed assets and raise funds for other long-term projects.

Earlier, IRB InvIT Fund got listed on the stock exchanges in May.

The broader market also depicted a weak trend, with the 30-share benchmark Sensex plunging 118.93 points to end at 31,190.56.