Should one invest in Power Grid InvIT?

The Indian Stock Market is exploring new vehicles to fund infrastructure BOT (Build, Operate, Transfer). Inline with this, we have seen REITs (Real Estate Investment Trust) take off with a lot of fanfare and having performed decently since launch.

Performance of Brookfield REITs(since launch)

Brookfield manages assets in India and has performed pretty decently and provided dividends to shareholders on a regular basis.

On a similar note, Power Grid InvIT was launched as an infrastructure trust to pool assets meant to electrify the grid and maintain it over its lifetime.

Logo of Power Grid InvIT

The trust structure is as follows Power Grid Corporation of India Ltd.(PGCIL), a listed entity on the stock market has 5 assets under the InvIT.

Performance of Power Grid Stock that is managing the PGCIL InvIT

These Assets have in place a long-term Transmission Service Agreement (TSA) of 35 years from the Scheduled Commercial Operation Date (COD) of the relevant Initial Portfolio Asset.

PGCIL InvIT Managing Structure

The Five Assets under the PGCIL InvIT that are located across five states of India can be given as follows:

  • 11 transmission lines, including six 765 kV transmission lines and
  • Five 400 kV transmission lines
  • Three substations with 6,630 MVA of an aggregate transformation capacity and 1,955.66 km of optical ground wire
PGCIL InvIT Assets spread across the Indian Heartland

As the assets fall under the emerging hubs of development in India, the assets are going to accrue value for the investor. The InvIT since listing at a Book Value of INR 100, has been able to return ~20% since listing.

Performance of Powergrid InvIT (since launch)

With electrification being the prime focus of the Government, InvITs like the PGCIL InvIT are set to get popular. Being invested in them can bring in the diversity to the portfolio and protection against volatility as the pricing is backed by tangible assets with a sovereign guarantee

Hope this helps

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Happy Investing!!


  2. PowerGrid InvIT Share Price, PowerGrid InvIT Stock Price, Powergrid Infrastructure Investment Trust Ltd. Stock Price, Share Price, Live BSE/NSE, Powergrid Infrastructure Investment Trust Ltd. Bids Offers. Buy/Sell Powergrid Infrastructure Investment Trust Ltd. news & tips, & F&O Quotes, NSE/BSE Forecast News, and Live Quotes
  3. Power Grid to transfer assets worth Rs 7,500 crore to InvIT in FY23

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