Indigrid NCD 2021 Tranch-1
They are India’s first listed power sector infrastructure investment trust, sponsored by the KKR Sponsor and the Sterlite Sponsor. IndiGrid was established on October 21, 2016 and is registered with SEBI pursuant to the InvIT Regulation.
They own thirteen operating projects, consisting of 38 EHV overhead power transmission lines, comprising 7765 kV transmission lines, 29, 400 kV, and 2, 132 kV transmission lines, with a total circuit length of approximately 7,570 ckms and 11 substations with 13,550 MVA of transformation capacity, across 17 states and 1 union territory, in India.
IndiGrid has assets under management worth of approximately ₹ 142,000 million as on December 31, 2020. IndiGrid Investment Managers Limited (formerly known as Sterlite Investment Managers Limited), is the investment manager of the InvIT and is majority owned by Electron IM Pte. Ltd., an affiliate of KKR.
They have consistently been given a corporate credit rating of ‘CCA AAA/Stable’ by CRISIL, ‘IND AAA’/Stable by India Ratings and ‘ICRA AAA (Stable)’ by ICRA.
Objective of NCD Indigrid NCD 2021 Tranch-1:
Indigrid is raising Rs.1000 crores for the purpose of onward lending to the Portfolio Assets, financing and for repayment/prepayment of interest and principal of existing borrowings of the Trust.
Link of NCD Prospectus
Indigrid NCD 2021 Tranch-1 Details:
| Open Date: | Apr 28 2021 |
| Close Date: | May 05 2021 |
| Issue Type: | Public Issue |
| Issue Size: | ₹ 1000 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 10 NCD |
| Minimum Order Quantity: | 10000 NCD |
| Listing At: | NSE,BSE |
Financials:
(Fig. in Crores)
Source: Screener
| Particulars(cr) | Mar-18 | Mar-19 | Mar-20 | TTM |
| Sales | 448 | 666 | 1,243 | 1,531 |
| Expenses | 40 | 109 | 53 | 172 |
| Operating Profit | 408 | 557 | 1,190 | 1,359 |
| OPM % | 91% | 84% | 96% | 89% |
| Other Income | 13 | 8 | 36 | 4 |
| Interest | 101 | 230 | 415 | 600 |
| Depreciation | 116 | 181 | 310 | 396 |
| Net Profit | 210 | 154 | 506 | 365 |
| EPS in Rs | 6.18 | 4.52 | 7.22 | 5.21 |
Credit Rating:
The NCDs have been rated ‘CRISIL AAA/Stable’ by CRISIL Ratings Limited and ‘IND AAA/Stable’ by India Ratings and Research Private Limited for an amount of up to ₹ 1,000 crore by way of the letter dated March 26, 2021.
The rating of the NCDs by CRISIL Ratings Limited and India Ratings and Research Private Limited indicate the highest degree of safety regarding timely servicing of financial obligation and lowest credit risk.
Interest Rates:
| Category | 3-year | 5-year | 7-year | 10-year |
| Category-I & II | 6.65% | 7.45% | 7.70% | 7.95% |
| Category- III&IV | 6.75% | 7.60% | 7.90% | 8.20% |
Post Tax returns:
(i) Sold after Maturity- The interest earned through NCDs will be added to the total income and will be taxed depending upon the income slab of an Individual.
(ii) Sold Before Maturity - If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold within a period of 12 months from the date of allotment, short term capital gains/loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains/loss (LTCG).
Recommendation:
Currently, India is a power surplus country and currently has total installed capacity of 377 GW. Over the last few years, because of good monsoon, government initiative of use of low power bulbs, & low T&D losses, the power growth has not followed the GDP growth trend. However, with government focus on Infrastructure development and making India a global hub for manufacturing, the demand will definitely come in coming years. Plus the Indi Grid business model is quite attractive with clear visibility of cash-flows and chances of default are very less.
Indi Grid is offering an attractive interest rates for 7.60% for the 5 year tenure for the Retail category.
Lead Manager of Indigrid NCD 2021 Tranch-1:
- JM Financial Consultants Private Limited
Registrar of Indigrid NCD 2021 Tranch-1:
- Kfin Technology Private Limited
Discussion on Indigrid NCD 2021 Tranch-1:
4 Comments
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Issue closed today…
Why closed , isnt the tommorow last day
It is first come first serve basis…Already subscribed fully…
Public Issue Of Secured, Listed, Redeemable NCD
Issuer: *India Grid Trust*
Type and nature of instrument: *Secured, redeemable NCD*
Credit Ratings: *CRISIL AAA Stable, India ratings AAA Stable*
Lead Manager: *JM Financial Ltd* (Sole)
Base Issue: ₹ 100 Crores plus green shoe of ₹ 900 crores.
Face Value: ₹ 1000/NCD
Minimum Application: ₹ 10000/
Mode Of Issue: *Public Issue*
Tenure: 3, 5, 7 & 10 years
Coupon Rate (%per annum)
Cat III & IV : individuals 6.75%, 7.60%, 7.90% & 8.20% (annual)
: 7.69% & 7.97%(7 & 10 yrs qtrly)
Cat I & II : non individuals 6.65%, 7.45%, 7.70% & 7.95% (annual)
: 7.49% & 7.72% (7 & 10 yrs qtrly)
Issue opens : 28th April 2021
Issue closes: 05th May 2021
India Grid invit unit holders will get one time extra coupon as incentives @ 0.05,% 0.10%, 0.15% & 0.20% at end of one year for 3,5,7 & 10 years respectively.
Regards
Team JM Financial Services Ltd.