PGInvIT, or POWERGRID Infrastructure Investment Trust, is an infrastructure investment trust established by Power Grid Corporation of India Limited. Here’s a detailed overview of its structure, operations, and financial aspects.

Establishment and Registration
PGInvIT was set up as an irrevocable trust under the Indian Trusts Act, 1882, and registered with the Securities and Exchange Board of India (SEBI) on January 7, 2021.

Sponsorship and Management
The trust is sponsored by Power Grid Corporation of India Limited (POWERGRID), a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Power, Government of India. IDBI Trusteeship Services Limited serves as the Trustee, while POWERGRID Unchahar Transmission Limited acts as the Investment Manage

Initial Public Offering (IPO)
PGInvIT launched its Initial Public Offer (IPO) from April 29 to May 3, 2021. The IPO included a fresh issue worth ₹4,993.483 crore and an offer for sale amounting to ₹2,741.508 crore at a price band of ₹99-₹100 per unit, totaling approximately ₹7,734.991 crore1.
Yield and Investment Strategy

The trust aims to provide an attractive pre-tax yield of around 10% through investments in cash-generating projects with low debt levels. This yield is often compared favorably to traditional fixed deposits.

Operational Mechanism
Investment Focus
PGInvIT primarily invests in power transmission assets, acquiring rights to transmit electricity through established power lines. This model allows it to generate revenue by selling transmission rights to various power companies across states3

Cash Flow and Returns
Despite facing challenges such as impairments in subsidiary investments, PGInvIT has maintained positive cash flows. Investors have noted that even with significant impairments reported, the cash flow remains robust compared to previous years2. The distribution per unit (DPU) is a critical metric for investors as it reflects returns from their investments.

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