Top brokerage houses have given subscribe rating to the PowerGrid Infrastructure Investment Trust (PGInVIT) initial public offering (IPO)
PGInVIT, the first Infrastructure Investment Trust from a public sector company, is seen as a low-risk security that could provide superior returns than traditional fixed income products. While giving subscribe rating to the IPO Prabhudas Lilladhar, said rating to the IPO has been given on the basis of competitive advantage of its sponsors, consistent and stable cash flow, strategic and critical nature of power transmission business and strong financial positioning. With consistent and stable cash flows from assets along with long term visibility and low counter party risks, analysts said PGInVIT is likely to generate 9-12% yield annually over the life of assets. “Since transmission charges are fixed for a period of 35 years, there is minimal price risk arising from transmission charge resetting, which provides stability, consistent cash flows and long-term visibility,” said KR Choksey while giving subscribe rating to the IPO. PGInVIT’s sponsor, PGCIL was conferred with ‘