Tag: indigrid

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Axis Bank’s Net Profit Rises 62% YoY in Q3 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Axis Bank Q3 Results: Net profit rises 62% YoY to ₹5,853 crore

Axis Bank reported a 62% YoY increase in net profit to ₹5,853 crore for the quarter ended December (Q3 FY23). Its net interest income (NII) rose 31% YoY to ₹10,360 crore during the same period. The gross non-performing assets (GNPA) ratio improved from 3.53% in Q3 FY22 to 2.5% in Q3 FY23. Provisions stood at ₹550 crore in Q3 FY23, down 68% YoY.

Read more here.

IndiGrid to acquire Khargone Transmission for ₹1.497.5 crore

India Grid Trust (IndiGrid) will acquire a 100% equity stake in Khargone Transmission at an enterprise value of about ₹1,497.5 crore. Khargone Transmission was incorporated on November 28, 2015, to improve power supply and grid reliability by delivering 1320 MW of thermal power from Khargone power plant to consumers in the domestic, commercial, agricultural, and industrial segments in the state of Madhya Pradesh and Maharashtra.

Read more here.

Canara Bank Q3 Results: Net profit rises 92% YoY to ₹2,882 crore

Canara Bank reported a 92% YoY increase in net profit to ₹2,881.5 crore for the quarter ended December (Q3 FY23). Its net interest income (NII) rose 24% YoY to ₹8,600 crore during the same period. The gross non-performing assets (GNPA) ratio improved from 6.37% in Q2 FY23 to 5.89% in Q3 FY23. Provisions stood at ₹3,121 crore in Q3 FY23, up 39% YoY.

Read more here.

Glenmark Pharma launches medication to prevent chemotherapy-induced nausea

Glenmark Pharmaceuticals Ltd has launched the IV injection formulation Akynzeo IV under an exclusive licensing agreement with Helsinn (a Swiss biopharma group company). It is administered 30 minutes before the start of each chemotherapy cycle which helps prevent both acute and delayed phases of chemotherapy-induced nausea and vomiting. The drug is already being marketed in the EU, the US, and Australia. 

Read more here.

Route Mobile Q3 Results: Net profit rises 84% YoY to ₹85 crore

Route Mobile Ltd reported an 84.4% YoY increase in consolidated net profit to ₹85.36 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 75.16% YoY to ₹985.72 crore during the same period. EBITDA stood at ₹128.3 crore in Q3, recording a growth of 66.19% YoY. Route Mobile is a cloud communications platform service provider that caters to enterprises, OTT players, and mobile network operators (MNO).

Read more here.

L&T Construction wins “significant” orders across various businesses

Larsen & Toubro’s construction arm has secured significant orders (in the range of ₹1,000-2,500 crore) for its power transmission & distribution (PT&D) and buildings & factories (B&F) businesses. The PT&D business has bagged a turnkey engineering, procurement, and construction (EPC) order to set up a 112.5 MW solar plant in West Bengal. The B&F business has secured an order from Nanavati Max Super Specialty Hospital to construct a state-of-the-art 600-bed super specialty hospital in Mumbai.

Read more here.

IDBI Bank Q3 Results: Net profit rises 60% YoY to ₹927 crore

IDBI Bank reported a 60% YoY increase in net profit to ₹927 crore for the quarter ended December (Q3 FY23). Its net interest income (NII) rose 23% YoY to ₹2,925 crore during the same period. The gross non-performing assets (GNPA) ratio improved from 21.68% in Q3 FY22 to 13.82% in Q3 FY23. Provisions came in at ₹784.28 crore in Q3 FY23, down 2.18% YoY.

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Krsnaa Diagnostics opens 14 pathology labs, 64 collection centers in Himachal

Krsnaa Diagnostics has operationalised 14 pathology laboratories and 64 collection centres in Himachal Pradesh. With this, the company has completed 100% of the project implementation in the state. The company had bagged a tender for providing diagnostic services at the Himachal Pradesh Government’s health institutions in the entire state in February 2022.

Read more here.

Tata Motors partners with ICICI Bank to offer financing solutions to its passenger EV dealers

Tata Motors has partnered with ICICI Bank to offer financing solutions to its authorised passenger electric vehicle (EV) dealers. Under the partnership, ICICI Bank will provide inventory funding to the authorised passenger EV dealers in addition to the bank’s funding to dealers for diesel and petrol models. The EV dealers can avail of flexible repayment tenures through the partnership.

Read more here.

Tata Power to install public EV charging points at GAIL CNG stations in Bengaluru

Tata Power has signed an agreement with GAIL Gas Limited to install DC fast charging points at two of its CNG stations in Bengaluru. The partnership is in line with Tata Power’s commitment to encourage and promote electric mobility across the country and GAIL Gas’ commitment to delivering convenience to its customers who wish to switch to EVs. Tata Power plans to install 25,000 public EV charging stations across the length and breadth of India in the next five years.

Read more here.

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Tata Group’s BigBasket Eyes IPO by 2025 – Top Indian Market Updates

big basket

Here are some of the major updates that could move the markets tomorrow:

Tata-owned BigBasket eyes IPO by 2025 after $200 million fundraising: Report

According to a BQ Prime report, Tata Group’s online grocer BigBasket is expected to launch an initial public offering (IPO) within three years after the recent fundraising valued the online grocer at $3.2 billion. The company had raised $200 million (~₹1,650 crore) to boost its quick commerce arm and expand its nationwide footprint. At present, BigBasket operates in 55 cities. The company wants to expand to 75 cities by March 2023.

Read more here.

Auto components industry grew 34.8% to ₹2.65 lakh crore in H1 FY23

India’s auto components industry witnessed a 34.8% YoY growth to ₹2.65 lakh crore in the first half (H1) of the current financial year (FY2022-23), said the Automotive Component Manufacturers Association of India. During the period, exports of components grew by 8.6% to ₹79.03 lakh crore, while imports rose 17.2% to ₹79.8 lakh crore. There was strong demand in the domestic market, particularly from the passenger vehicles segment.

Read more here.

Mankind Pharma enters pet care segment with ‘PetStar’ brand

Mankind Pharma has diversified into the pet care segment with the launch of its ‘PetStar’ brand. The brand aims to build and support the pet care ecosystem by offering pet food, medicine, supplements, and grooming products. The pharma company aims to make PetStar a loved, palatable, nutritious, and healthy food brand for pets such as dogs and cats.

Read more here.

M&M to continue strong momentum owing to robust demand for newly-launched SUVs

Mahindra & Mahindra’s revenue market share in the SUV category stood at 19.9% in Sept 2022, up from 12.9% in Sept 2021. The company had pending orders for 2.6 lakh SUVs at the close of last quarter. M&M’s new launches (Thar, XUV700, and Scorpio) have been received well, and the automaker is confident of maintaining this momentum with a strong order book and in-demand blockbuster products.

Read more here.

Credit growth far away from being considered ‘exuberant’: RBI Governor

The present credit (or loan) growth in India is far away from being considered ‘exuberant’ and there is no ‘big gap’ between the credit growth and deposit accretion when looking at the absolute numbers, said RBI Governor Shaktikanta Das at the BFSI Summit organised by Business Standard. Credit growth is going up after two years of being depressed, while the deposit growth number has come off a relatively higher growth during the pandemic years.

Read more here.

IndiGrid, G R Infraprojects partner to bid for power transmission projects worth ₹5,000 crore

India Grid Trust (IndiGrid) and G R Infraprojects Ltd (GRIL) have partnered to bid for identified power transmission projects worth ₹5,000 crore. The two firms have entered into a framework agreement to acquire a 100% stake in Rajgarh Transmission Ltd, which GRIL won in March 2022. The power ministry has recently unveiled a plan for investment of ₹2.5 lakh crore in building transmission infrastructure for meeting the vision of 500 GW of renewable energy capacity by 2030.

Read more here.

IL&FS transfers two more road assets worth ₹976 crore to Roadstar InvIT

IL&FS has transferred two more road projects— Hazaribagh Ranchi Expressway and Thiruvananthapuram Road Development Company— to Roadstar Infra Investment Trust (InvIT) at an enterprise value of ₹979 crore. With this, secured lenders of both the assets, including Punjab National Bank, Union Bank, Indian Overseas Bank, and others (with a combined debt of over ₹630 crore) will get 100% recovery through restructuring of their debt under the InvIT.

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Paytm CEO says there will be no more cash burn

Paytm CEO Vijay Shekhar Sharma said that going ahead, there will be no more cash burn in the business. He also added that the digital payments firm was far ahead in re-setting its ambition on controlling spending. Paytm had net cash, cash equivalents, and an investable balance of ₹9,182 crore at the end of September, according to its latest quarterly earnings report. CLSA also upgraded Paytm in November, saying that cash burn could end in another 4-6 quarters.

Read more here.

Bharti Airtel launches 5G services in Ahmedabad, Gandhinagar, Imphal

Bharti Airtel Ltd announced the launch of high-speed 5G services in Ahmedabad and Gandhinagar (Gujarat). The company also announced the rollout of 5G services in Imphal (Manipur). Customers with 5 G-enabled devices can enjoy the high-speed network at no extra cost until the rollout is more widespread. Airtel 5G will allow superfast access to high-definition video streaming, gaming, and multiple chatting.

Read more here.

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Editorial

Could IndiGrid InvIT Be The Next Breakout Stock?

India Grid Infrastructure Investment Trust, or IndiGrid InvIT, is India’s first listed power-sector infrastructure investment trust. The trust’s assets under management (AUM) are currently worth ~Rs 15,000 crore. The listed company has delivered consistent growth in terms of share price appreciation, revenue, and profits since its Initial Public Offering in 2017. Could it be the next breakout stock?

In this piece, we discuss what an InvIT is, what sets IndiGrid InvIT from the rest, and what drives the company.

What is an InvIT?

An Infrastructure Investment Trust (InvIT) is an investment scheme (similar to a mutual fund) that enables individual and institutional investors to invest funds in infrastructure projects directly. These investors, who collectively invest small amounts of money in income-generating assets, receive a small portion of the income in return. These ‘assets’ could include road projects, power transmission lines, gas pipelines, and much more. Infrastructure companies monetise their income-generating assets (through InvITs) to repay their debt obligations quickly and effectively. The primary objective of InvITs is to promote the infrastructure sector of a country by encouraging more individuals to invest in it. 

Read more about InvITs at marketfeed over here. 

What is India Grid InvIT?

IndiGrid InvIT is India’s first listed power sector infrastructure investment trust. It is sponsored by American global investment firm KKR & Co. and Sterlite Power Grid Ventures Ltd (SPGVL). The InvIT owns 13 projects, spanning over 30 transmission lines, spread across 7,570 circuit kilometres. IndiGrid also owns 11 substations with  13,550 MVA mega-volt ampere (MVA) transformation capacity across 15 states and one Union Territory. The company has projects in both Transmission and Renewable (Solar) segments.

Investor Corner: IndiGrid InvIT

  • Between 2018 and 2021, The company’s total revenue has grown at a 3-year CAGR of ~56%. The company’s net profit has grown at a 3-year CAGR of ~59% in the same period. 
  • The company is profitable and has displayed consistent growth in terms of revenue, quarter after quarter. 
  • The company debuted in 2017. Soon after, its price took a dip, consolidated for a while and took slowly declined till 2019. The InvIT had seen consistent growth in share price way before the pandemic. Its share price saw a steel rally after the pandemic induced slow down. While the share price hasn’t noticed ‘strong momentum’ or ‘volatility’, it has witnessed a slow and steady growth rate in share price as is evident from the graph given below. IndiGrid has returned ~76% over the past three years. An investment of Rs 1,00,000 would yield Rs 76,000 at the end of three years. 
  • The company’s consistent growth is overshadowed by the HUGE debt burden that it has undertaken. Its Long Term Liabilities has grown from Rs 994.1 crore in March 2018 to Rs 10,401.7 crore in March 2021.
  • The average cost of debt is ~7.81%. This means that for every Rs 100 that the company borrows, it pays close to Rs 7.81 to the lender on average. Nearly 70% of the company’s debt are fixed-rate borrowings where the interest rate does not increase significantly with time or in case of delayed repayment. The InvIT is rated AAA by credit rating agencies like CRISIL, ICRA and India Ratings.

The Way Ahead

The power transmission and distribution sector has been entangled in a web of political and operational issues. These projects weren’t profitable because of high subsidization by the government, power theft, and payment defaults by local electricity boards. The 2021 budget session was a historical one for the power sector as the government tried to shift the burden of payments from power companies, onto itself. The government also paved the way through policies for the renewable energy sector to flourish. To sum it up, the power sector is going to flourish in the coming years. 

IndiGrid InvIT saw lesser interest from investors in its initial days because the concept of an InvIT getting listed on the stock market was unheard of. Despite being consistent, the company’s revenue and profits are not in tune with the debt burden that it has undertaken. This makes the company look fundamentally weak in the eyes of overseers. What one doesn’t realise is that infrastructure projects take many years to flourish and yield a return. The current power policy is signing towards a flourishing sector, which would yield good returns for both shareholders and lenders.

Click here to read more about India’s power transmission and distribution sector, its structure, functioning, and the business structure of the top players. 

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Infosys Reports 23% YoY Rise in Net Profit in Q1 – Top Indian Market News

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Infosys Q1 Results: Net profit rises 23% YoY to Rs 5,195 crore

Infosys Limited reported a 22.7% year-on-year (YoY) increase in consolidated net profit to Rs 5,195 crore for the quarter ended June (Q1 FY22). Net profit has increased by 2.3% when compared to the previous quarter. Its revenue from operations rose 17.87% YoY (or 6% QoQ) to Rs 23,665 crore during the same period. The IT company signed large deals worth $2.6 billion (~Rs 19,300 crore) in Q1. Infosys has announced plans to hire 35,000 college graduates globally in the current financial year (FY22).

Read more here.

India’s WPI inflation eases to 12.07% in June

The inflation based on the Wholesale Price Index (WPI) eased to 12.07% in June 2021, compared with 12.94% in May. There was a decline in the prices of crude oil, power, and food items last month. Inflation in manufactured products stood at 10.88% in June, compared with 10.83% in May. The inflation in food articles stood at 3.09% YoY in June, compared to 4.31% in May. The fuel and power index rose 32.83% annually in June, against an increase of 37.61% in May. The data was released by the Ministry of Commerce and Industry.

Read more here.

Zomato IPO subscribed 1.05 times on first day of bidding

The Rs 9,375 crore initial public offering (IPO) of Zomato Limited was subscribed 1.05 times on the first day of bidding. The IPO has received bids for 75.60 crore equity shares, compared to the issue size of 71.92 crore shares. Retail investors have subscribed 2.7 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have put in bids for 13% and 98%, respectively, against their reserved portions. The IPO closes on July 16 (Friday).

To learn more about the IPO, click here.

ITC to enter boutique lifestyle hotel segment with ‘Storii’

ITC Limited will venture into the boutique lifestyle hotel segment with a new brand— Storii. The launch is part of the company’s strategy to focus more on managing properties rather than owning them. With Storii, ITC aims to offer curated travel experiences to new-age travellers. The company revealed that its new hotel signings and openings took a hit in 2020-21 due to the Covid-19 pandemic. However, it has assured of bouncing back again as the state of affairs normalises.

Read more here.

L&T Tech Q1 Results: Net profit rises 84% YoY to Rs 216 crore

L&T Technology Services (LTTS) reported an 84% YoY increase in net profit to Rs 216.2 crore for the quarter ended June (Q1 FY22). Net profit has increased by 11% when compared to the previous quarter. Its revenue from operations rose 17% YoY to Rs 1,518 crore during the same period. The company secured six deals with a total contract value (TCV) of more than $10 million (~Rs 74.5 crore) in Q1. LTTS is the engineering services arm of Larsen & Toubro.

Read more here.

CEAT to supply tyres for M&M’s new seven-seater Bolero Neo

CEAT Limited will supply its range of high-performance CZAR HP tyres for Mahindra & Mahindra’s (M&M) new seven-seater Bolero Neo SUV. The seven-seater SUV is built on third-generation chassis, shared with Scorpio and Thar. CEAT’s tyres are designed to provide better steering control and higher fuel efficiency. The company said the tyres have been optimised to perfectly complement the exceptional performance of Bolero Neo.

Read more here.

Quess Corp counters IT department, denies concealing income of Rs 880 crore

Quess Corp has denied allegations of concealing income after the Income Tax (IT) Department claimed that it had revealed undisclosed income of ~Rs 880 crore during raids of the company’s two premises in Bengaluru. “We extended full cooperation to the Department, including providing complete information in a timely manner, and have not received any claims to date,” said Quess Corp in a statement. Quess Corp said the IT Dept had conducted surveys at its registered offices during July 8-10.

Read more here.

IndiGrid acquires 100 MW solar assets from FRV for Rs 660 crore

India Grid Trust (IndiGrid) has acquired the entire stake in two solar energy assets from Fotowatio Renewable Ventures (FRV) for Rs 660 crore. The cumulative capacity of the solar assets is 100 megawatts (MW). IndiGrid has become the first infrastructure investment trust (InvIT) to acquire renewable energy assets in India. With this acquisition, IndiGrid’s asset portfolio will consist of 14 diversified projects— 40 transmission lines, 11 substations, and 100 MW solar power plants across 18 states and one Union Territory.

Read more here.

Mahanagar Gas hikes prices of CNG, domestic PNG

Mahanagar Gas Limited (MGL) has announced a hike in prices of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG) for Mumbai and surrounding areas. The rate of CNG has been hiked by Rs 2.58 per kilogram, taking it up to Rs 51.98 per kg. Domestic PNG rates have been hiked by Rs 0.55 per standard cubic meter (SCM). MGL has increased prices to offset operational costs and high gas pipeline transportation costs.

Read more here.

Marico to acquire 60% stake in Apcos Naturals

Marico Limited will acquire a 60% stake in Apcos Naturals Pvt Ltd over the next two years through primary infusion and secondary buyouts. Apcos owns Just Herbs, a range of ayurvedic and organic skin and hair care products. The brand had posted sales of Rs 17.5 crore during the financial year 2020-21 (FY21). Marico will acquire a 52.4% stake in Apcos by the end of July, while the balance 7.6% stake will be bought by March 2023.

Read more here.

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IndiGrid InvIT to Acquire Power Transmission Project From Sterlite Power – Top Indian Market News

IndiGrid InvIT to acquire power transmission project from Sterlite Power for Rs 4,625 crore

India Grid Trust (IndiGrid) has signed a share purchase agreement to acquire NER-II Transmission Limited from Sterlite Power. The indicative value of the acquisition is Rs 4,625 crore. The 830 circuit-km long transmission project is spread across Assam, Arunachal Pradesh, and Tripura. With this acquisition, IndiGrid’s assets under management (AUM) will increase by 35% to over Rs 20,000 crore.

IndiGrid is an infrastructure investment trust (InvIT) that owns inter-state power transmission assets in India.

Read more here.

Jaguar Land Rover to lay-off one-third of its workforce in India

Tata Group-owned Jaguar Land Rover (JLR) has announced job cuts in India in line with this ‘Reimagine’ strategy. As per reports, JLR will lay off one-third of its workforce in the country to cut costs. The layoffs have already started and are likely to continue throughout this month. JLR’s global strategy is to remove about 2,000 employees working in the non-manufacturing departments by the next financial year.

Read more here.

To know more about JLR’s Reimagine strategy, click here. 

Indian Bank to divest stake in asset reconstruction JV ASREC (India)

Indian Bank will divest its stake in joint venture (JV) entity ASREC (India) Limited as part of an asset monetisation exercise. ASREC is an asset reconstruction company in which Indian Bank, Bank of India, Union Bank of India, Life Insurance Company (LIC), and Deutsche Bank are shareholders. State-owned Indian Bank holds a 38.26% stake in the entity. The bank had earlier announced plans to monetise (or sell-off) its non-core assets to boost capital, even as it is looking to raise Rs 4,000 crore through a share-sale.

Read more here.

Embassy REIT receives approval for simplifying the holding structure of key portfolio assets

Embassy Office Parks REIT announced that it has received approval from the National Company Law Tribunal (NCLT) in relation to the scheme of arrangement among its entities. This consists of restructuring Embassy REIT’s key portfolio assets including Embassy Manyata and Embassy TechZone. Embassy REIT had initiated the scheme to simplify its holding structure by reducing the shareholding tiers, as well as to increase the dividend component of its unit-holders. 

Read more here.

You can learn more about REIT’s here.

Cipla announces liquidation of step-down subsidiary Cipla (UK)

Cipla Limited announced that its step-down subsidiary, Cipla (UK), has been voluntarily liquidated with effect from March 5, 2021. The pharma company said that the liquidation was a part of an internal reorganisation and it will not affect the performance or revenue of the firm. [Liquidation is the process of closing or winding down a company and selling off its assets]

Govt open to experimenting with cryptocurrency: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharman has hinted that the Centre may not go for a blanket ban on digital currencies. She said that the government is keeping windows opens for experimentations in the cryptocurrency world. The minister further said that the call on cryptocurrencies will be taken only after deliberations with the Reserve Bank of India (RBI) and cabinet members are over.

Read more here. 

DHFL auditor finds another fraud of Rs 1,424 crore

Dewan Housing Finance Limited (DHFL) said its administrator has filed additional affidavits in NCLT Mumbai in connection with fraud amounting to over Rs 1,424 crore. DHFL’s auditor recently found certain transactions that were undervalued and fraudulent in nature, which amounted to Rs 1,424 core. The company is being run by an administrator in the aftermath of the IL&FS crisis in 2018 and unearthing of massive fraud. DHFL is currently undergoing a corporate debt resolution process in the National Company Law Tribunal (NCLT), Mumbai. 

Read more here.

TVS Motor Company to provide free Covid-19 vaccination to all employees

TVS Motor Company announced that it has extended free Covid-19 vaccination for all employees and their immediate family members. The vaccination drive will cover 35,000 direct and indirect company employees across India. “With this vaccination drive, we continue our endeavour to prioritise the health and safety of all our employees and their families”, said R Ananda Krishnan, Executive Vice President of Human Resources at TVS.

Read more here.

Sayaji Hotels to expand its presence to 7 new locations

Sayaji Hotels Management Ltd (SHML), a wholly-owned subsidiary of Sayaji Hotels Limited, has announced plans of setting up properties across seven cities in India. This includes Vizag, Bhuj, Dehradun, Udaipur, Jamnagar, Nashik, and Morbi. This expansion plan will lead to an addition of 476 new rooms and an overall increase of 1,000 rooms into the company’s portfolio by the next financial year (FY 2021-22).

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Editorial

What are Infrastructure Investment Trusts (InvITs)?

An Infrastructure Investment Trust (InvIT) is an investment scheme (similar to a mutual fund) that enables individual and institutional investors to directly invest funds in infrastructure projects. These investors, who collectively invest small amounts of money in income-generating assets, receive a small portion of the income in return. These ‘assets’ could include road projects, power transmission lines, gas pipelines and much more.

We know that infrastructure firms require a steady cash flow to complete their projects. In most cases, they borrow large amounts of money from financial institutions. Thus, companies monetise their income-generating assets (through InvITs) to repay their debt obligations quickly and effectively. The funds raised through InvITs are used to pay off interest on loans and other substantial expenses. The primary objective of InvITs is to promote the infrastructure sector of a country by encouraging more individuals to invest in it. 

An InvIT is established as a trust and must be registered with the Securities and Exchange Board of India (SEBI). The SEBI (Infrastructure Investment Trusts) Regulations, 2014 provides specific details regarding the registration and regulation of InvITs. Once registered, InvITs can raise funds through public or private placement and issue units to investors. In return, investors obtain a share of the annual distribution of dividends and interests. The units of such trusts are listed on the stock exchanges as a combination of both equity and debt instruments. 

The minimum amount required to invest in an InvIT IPO is Rs 10 lakh. Thus, large financial institutions or high net worth individuals (HNIs) find InvITs as a profitable investment opportunity. Small retail investors would struggle to apply for such IPOs.  

Types of InvITs

  1. The first type of InvIT allows investment in revenue-generating completed projects. Firms invite investors to invest in finished projects through an InvIT IPO.
  1. The second type of InvIT allows investors to invest in projects that are both completed or under construction. 

Structure of InvITs in India

  1. Trustee – A trustee inspects the performance of an InvIT and is certified by market regulator SEBI. They are required to invest at least 80% into infrastructure assets that generate steady revenue.
  1. Sponsor(s) – This refers to promoters, institutions, or companies— that have a net worth of at least Rs 100 crore— which establishes an InvIT. They must hold a minimum of 25% in the InvIT with a minimum lock-in period of 3 years or as notified by any regulatory requirement. When it comes to public-private partnership (PPP) projects, sponsors serve as a Special Purpose Vehicle (SPV). [An SPV is a subsidiary company that facilitate the parent company’s financial arrangements, including leverage and speculative investments, without compromising the entire group]
  1. Investment Manager – This refers to a limited liability partnership (LLP) or an organisation that manages investments and supervises all the operational activities surrounding the InvIT.
  1. Project Manager – They are responsible for the execution and completion of infrastructure projects.

Prominent InvITs in India

As of February 2021, there are 13 Infrastructure Investment Trusts registered with SEBI. Let us take a look at some of the most prominent ones:

India Grid Trust

India Grid Trust (IndiGrid) is India’s first listed power sector infrastructure investment trust. It is sponsored by American global investment firm KKR & Co. and Sterlite Power Grid Ventures Ltd (SPGVL). The InvIT owns 12 operating assets, spanning over 30 transmission lines, spread across 6,740 circuit kilometers. IndiGrid also owns 9 substations with 12,290 mega-volt ampere (MVA) transformation capacity across 15 states and one Union Territory, The entity’s assets under management (AUM) are currently worth ~Rs 15,000 crore.

IRB InvIT Fund

IRB InvIT Fund is the first listed InvIT focused on toll-road assets in India. The sponsor of the trust is IRB Infrastructure Developers Ltd, one of the largest infrastructure development and construction companies in India. IRB InvIT Fund owns, operates, and maintains a portfolio of six toll-road assets in the states of Maharashtra, Gujarat, Rajasthan, Karnataka, and Tamil Nadu. These toll roads are operated and maintained through concession agreements granted by the NHAI.

National Highways Infra Trust

It has been reported that the National Highways Authority of India (NHAI) will come out with an InvIT by March 2021. It will be the first InvIT sponsored by a government entity in our country. Around six road assets worth Rs 5,000 crore have been given in-principle approval for transfer to the InvIT. This will enable NHAI to monetise its completed National Highways that have a toll collection track record of at least 1 year.

Assets to be transferred to the InvIT include the 32.6 km Kotha-Kata Bypass to Kurnool (Telangana), the 75 km-long Palanpur-Abu Road in Gujarat, the 31 km-long Abu Road-Swaroopganj in Gujarat, the 160 km Chittorgarh Kota and Chittorgarh Bypass in Rajasthan, and the 77 km Maharashtra-Karnataka border to Belgaum. 

Power Grid Infrastructure Investment Trust

On January 28, 2021, Power Grid Corporation of India Ltd filed draft papers with SEBI for issuing an InvIT. The company seeks to raise more than Rs 5,000 crore to fund new and under-construction projects. This will be the first InVIT in the country to be floated by a public sector company. The offer includes a fresh issue as well as an offer-for-sale (OFS).

The trust’s initial portfolio will have transmission assets worth around Rs 7,000 crore. This includes PowerGrid Vizag Transmission Ltd, PowerGrid Kala Amb Transmission Ltd, PowerGrid Parli Transmission Ltd, PowerGrid Warora Transmission Ltd, and PowerGrid Jabalpur Transmission Ltd. The proceeds from the offer will be utilised for providing loans to the initial portfolio assets for repayment or pre-payment of debt and general expenses.

Other InvITs registered with SEBI include India Infrastructure Trust, Indian Highway Concessions Trust, IndInfravit Trust, MEP Infrastructure Investment Trust, Digital Fibre Infrastructure Trust, Oriental Infra Trust, Tower Infrastructure Trust, and Roadstar Infra Investment Trust.

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CBI Registers Cases Filed by SBI, Canara Bank Over Rs 8,000 crore Fraud – Top Indian Market News

CBI registers cases filed by SBI, Canara Bank over Rs 8,000 crore fraud

The Central Bureau of Investigation (CBI) has registered two separate cases filed by Canara Bank and State Bank of India regarding fraud to the extent of Rs 7,926.01 crore and Rs 313.79 crore, respectively. The first case was registered against a Hyderabad-based private company, its Chairman & Managing Director, additional Directors, and unknown public servants, on a complaint filed by Canara Bank. It was alleged that the private firm had availed credit facilities using multiple banking arrangements. 

The second case was registered against a private company in Chennai, along with its Chairman and Directors, on a complaint by the State Bank of India. It was alleged that the borrower company availed credit limits of about Rs 310 crore from SBI. The loan amounts were said to have been diverted to related parties. 

Read more here.

PM Modi presents ASSOCHAM Centenary Award to Ratan Tata

Prime Minister Narendra Modi presented the ‘ASSOCHAM Enterprise of the Century Award’ to Ratan Tata, who received the award on behalf of the Tata Group. PM Modi stated that ASSOCHAM and the entire Tata group has worked very hard to strengthen India’s economy and help the common Indian. Ratan Tata has been honoured for his distinguished contributions to the country. PM Modi was delivering the keynote address at ASSOCHAM’s Foundation Week. [ASSOCHAM stands for the Associated Chamber of Commerce of Inda].

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Apple puts Wistron on probation, confirms lapses in supplier code of conduct

Apple Inc. has placed Wistron Infocomm Manufacturing Pvt Ltd on probation and has confirmed lapses in Wistron’s supplier code of conduct that led to payment delays for the employees. This comes on the back of the violence last Saturday, when thousands of employees created unrest in Wistron’s facility in Karnataka, over unpaid dues. Apple stated that Wistron will not receive any new business from the company before they complete corrective actions. 

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Apollo Hospitals plans to raise Rs 1,500 crore in next two months 

Apollo Hospitals Enterprises Ltd (AHEL) is planning to raise around Rs 1,500 crore in the next two months to support its inorganic growth and strengthen its balance sheet. The funds will also be utilised to improve the services of Apollo 24/7, the company’s digital health platform. AHEL also stated that it is preparing to acquire specific businesses to strengthen its presence in key markets.

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Vodafone Idea launches Rs 399 digital exclusive prepaid and postpaid plans for new users

Vodafone Idea (Vi) has launched a new Rs. 399 digital exclusive plan for customers who place an order for a new SIM via its website. The new plan is listed under both prepaid and postpaid plans. The Rs 399 plan comes with data benefits. It has a validity of 56 days and offers 100 SMS per day to the users. The plan also comes with 1.5 GB mobile data per day. Additional benefits include access to Vi Movies and TV.

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IIFL Home partners with ICICI Bank to provide affordable housing and MSME loans

IIFL Finance Ltd announced that its home loan subsidiary, IIFL Home, has partnered with ICIC Bank to provide affordable housing and MSME (Micro, Small, and Medium Enterprise) loans. IIFL Home will originate and service customers through the entire loan life-cycle including sourcing, documentation, collection & loan servicing. ICICI Bank will provide funding to these customers

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IndiGrid buys FRV’s solar projects for Rs 660 crore

India Grid Trust (IndiGrid) has entered into an agreement to acquire 100% stakes in FRV Andhra Pradesh Solar Farm-I Pvt Ltd and FRV India Solar Park II Pvt Ltd, from FRV Solar Holdings XI B.V. The two projects comprise 50 MW of solar assets each. The enterprise value of the acquisition is Rs 660 crore. IndiGrid is India’s first listed power sector infrastructure investment trust (InvIT) and is sponsored by KKR and SPGVL.

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Indian banks pursue UK bankruptcy order against Vijay Mallya

A consortium of Indian banks led by the State Bank of India (SBI) returned to the High Court in London for a bankruptcy application hearing against liquor tycoon Vijay Mallya. The banks are pursuing the recovery of debt from loans paid out to his now-defunct Kingfisher Airlines. Vijay Mallya owes more than Rs 9,000 crore to the Indian banks.

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MTAR Technologies files for Rs 650 crore IPO

MTAR Technologies Ltd has filed a draft red herring prospectus with market regulator SEBI for an initial public offering (IPO). The company is likely to raise Rs 600-650 crore through the IPO. It will consist of a fresh issue of up to 40 lakh shares and an offer for sale (OFS) of up to 82 lakh shares of the face value of Rs 10 per share. 

MTAR Technologies is engaged in the manufacturing and development of mission-critical precision components for the nuclear, space, defense and clean energy sectors. The Hyderabad-based company operates 7 manufacturing facilities.

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Punjab National Bank QIP issue falls short of target by 46%

State-owned Punjab National Bank (PNB) was only able to secure 54% of its planned fundraising target through a qualified institutional placement (QIP). PNB had planned to raise Rs 7,000 crore through the QIP that had opened on December 15 (Tuesday). As the issue closed on Friday, it was reported that PNB was only able to raise Rs 3,788.04 crore.

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