External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Equity Bottom-Up

Power Grid Corporation Of India / Equity Bottom-Up

<p>It bagged INR90-100b in awards in recent months, which is a positive sign, given a declining order book. Nevertheless, the capex trajectory is on a decline. With proceeds from InvIT, we see strong scope for higher dividends. Valuations at 1.6x FY22E P/BV and 7-8% dividend yield remains attractive for a company with steady RoEs of 17-18%. We maintain our Buy...</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

It bagged INR90-100b in awards in recent months, which is a positive sign, given a declining order book. Nevertheless, the capex trajectory is on a decline. With proceeds from InvIT, we see strong scope for higher dividends. Valuations at 1.6x FY22E P/BV and 7-8% dividend yield remains attractive for a company with steady RoEs of 17-18%. We maintain our Buy...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

<p>PSP Projects: PSP Projects (PSP) reported revenue/EBITDA/APAT at INR 5/0.6/0.4bn for the quarter, largely in line with our estimate. The company witnessed turnaround in terms of order inflow as it bagged projects worth INR 22bn during the quarter. With that, the order book stood at INR 41bn at the end of FY21. PSP has guided for INR 20/18bn inflow/revenue and 11-12% EBITDA margin for FY22. As the Surat Diamond Bourse (SDB) project is coming to an end, PSP would qualify for the larger projects, leading to rerating of the stock.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

PSP Projects: PSP Projects (PSP) reported revenue/EBITDA/APAT at INR 5/0.6/0.4bn for the quarter, largely in line with our estimate. The company witnessed turnaround in terms of order inflow as it bagged projects worth INR 22bn during the quarter. With that, the order book stood at INR 41bn at the end of FY21. PSP has guided for INR 20/18bn inflow/revenue and 11-12% EBITDA margin for FY22. As the Surat Diamond Bourse (SDB) project is coming to an end, PSP would qualify for the larger projects, leading to rerating of the stock.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: Power Grid Corporation of India, Indostar Capital Finance, PSP Projects

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

PowerGrid Infrastructure Inves / Equity Capital Markets

<div><p>POWERGRID Infrastructure Investment Trust (PGIT) raised around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission assets of its sponsor Power Grid Corporation of India Limited (PGCIL). PGCIL is a central public sector enterprise which has been listed since 2007. </p></div><div>We have looked at various aspects of the deal in our previous notes: <a href="https://www.smartkarma.com/insights/powergrid-invit-pre-ipo-always-going-to-be-tricky-with-a-declining-yield" target="_blank" rel="noopener">POWERGRID InvIT Pre-IPO - Always going to be tricky with a declining yield</a> and <a href="https://www.smartkarma.com/insights/powergrid-invit-ipo-assets-are-fine-declining-yield-is-not" target="_blank" rel="noopener">POWERGRID InvIT IPO - Assets Are Fine, Declining Yield Is Not.</a>
</div><div></div><div><p>In this note we will talk about the trading dynamics.</p></div>

POWERGRID Infrastructure Investment Trust (PGIT) raised around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission assets of its sponsor Power Grid Corporation of India Limited (PGCIL). PGCIL is a central public sector enterprise which has been listed since 2007. We have looked at various aspects of the deal in our previous notes: POWERGRID InvIT Pre-IPO - Always going to be tricky with a declining yield and POWERGRID InvIT IPO - Assets Are Fine, Declining Yield Is Not.
In this note we will talk about the trading dynamics.

POWERGRID InvIT IPO Trading - Not a Bad Subscription Result

<p>POWERGRID Infrastructure Investment Trust (PGIT) aims to raise around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission assets of its sponsor Power Grid Corporation of India Limited (PGCIL). PGCIL is a central public sector enterprise which has been listed since 2007. </p><p>PGIT will initially own five assets with a total network of 11 power transmission lines of approximately 3,698.59 ckm and three substations having 6,630 Megavolt amperes (MVA) of aggregate transformation capacity, as of Sep 2020, across five states in India. The total valuation of the assets was INR105bn (US$1.4bn) as of Sep 2020. </p><p>These assets were awarded to PGCIL on a  build-own-operate-maintain (BOOM) basis. Therefore, the assets are operated under a long 35 years service agreement with largely pre-fixed revenue based on availability. In that sense, they will provide stable returns. However, its revenue terms are structured in such a way that its yield will continue to decline, while its sponsor’s government ownership will mean that it's unlikely to diversify away from transmission assets with declining yield.</p><p>Our previous coverage of the IPO:</p><ul><li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/powergrid-invit-pre-ipo-always-going-to-be-tricky-with-a-declining-yield" target="_blank" rel="noopener">POWERGRID InvIT Pre-IPO - Always going to be tricky with a declining yield</a></p></li></ul>

POWERGRID Infrastructure Investment Trust (PGIT) aims to raise around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission assets of its sponsor Power Grid Corporation of India Limited (PGCIL). PGCIL is a central public sector enterprise which has been listed since 2007. PGIT will initially own five assets with a total network of 11 power transmission lines of approximately 3,698.59 ckm and three substations having 6,630 Megavolt amperes (MVA) of aggregate transformation capacity, as of Sep 2020, across five states in India. The total valuation of the assets was INR105bn (US$1.4bn) as of Sep 2020. These assets were awarded to PGCIL on a  build-own-operate-maintain (BOOM) basis. Therefore, the assets are operated under a long 35 years service agreement with largely pre-fixed revenue based on availability. In that sense, they will provide stable returns. However, its revenue terms are structured in such a way that its yield will continue to decline, while its sponsor’s government ownership will mean that it's unlikely to diversify away from transmission assets with declining yield.Our previous coverage of the IPO:POWERGRID InvIT Pre-IPO - Always going to be tricky with a declining yield

POWERGRID InvIT IPO - Assets Are Fine, Declining Yield Is Not

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/powergrid-infrastructure-investment-trust" target="_blank" data-smartkarma-citation="entities:33025:1" rel="noopener">Powergrid Infrastructure Investment Trust (1883964D IN)</a>/PGInvIT is an infrastructure investment trust which will acquire a 74.0% stake in five assets which are Powergrid Vizag Transmission Limited (PVTL), Powergrid Kala Amb Transmission Limited (PKATL), Powergrid Parli Transmission Limited (PPTL), Powergrid Warora Transmission Limited (PWTL) and Powergrid Jabalpur Transmission Limited (PJTL) from <a href="https://www.smartkarma.com/entities/power-grid-corporation-of-india-limited" target="_blank" data-smartkarma-citation="entities:12621:1" rel="noopener">Power Grid Corporation Of India (PWGR IN)</a>, the sponsor.</p><p>PGInvIT is seeking to raise up to Rs77.3 billion ($1 billion). The offer has a primary/secondary split of 65%/35%. The book-building will run from 29 April to 3 May, with anchor investor allocation to be announced on 28 April. </p><div class="content-highlight"><p>Infrastructure Investment Trusts (InvITs) essentially aim to create a pool of assets that throw up a stable stream of cash flows for investors. There are relatively rare and PGInvIT will only be the third-listed InvIT after <a href="https://www.smartkarma.com/entities/india-grid-trust" target="_blank" data-smartkarma-citation="entities:23732:1" rel="noopener">India Grid Trust (INDIGRID IN)</a> and <a href="https://www.smartkarma.com/entities/irb-invit-fund" target="_blank" data-smartkarma-citation="entities:23698:1" rel="noopener">IRB InvIT Fund (IRBINVIT IN)</a>. The post-IPO performance of the two listed InvITs are mixed, with India Grid Trust up 28% and IRB InvIT down 46% from the issue price. Overall, we believe that PGInvIT offers an attractive proposition for investors willing to invest in a niche asset class.</p></div>

Powergrid Infrastructure Investment Trust (1883964D IN)/PGInvIT is an infrastructure investment trust which will acquire a 74.0% stake in five assets which are Powergrid Vizag Transmission Limited (PVTL), Powergrid Kala Amb Transmission Limited (PKATL), Powergrid Parli Transmission Limited (PPTL), Powergrid Warora Transmission Limited (PWTL) and Powergrid Jabalpur Transmission Limited (PJTL) from Power Grid Corporation Of India (PWGR IN), the sponsor.PGInvIT is seeking to raise up to Rs77.3 billion ($1 billion). The offer has a primary/secondary split of 65%/35%. The book-building will run from 29 April to 3 May, with anchor investor allocation to be announced on 28 April. Infrastructure Investment Trusts (InvITs) essentially aim to create a pool of assets that throw up a stable stream of cash flows for investors. There are relatively rare and PGInvIT will only be the third-listed InvIT after India Grid Trust (INDIGRID IN) and IRB InvIT Fund (IRBINVIT IN). The post-IPO performance of the two listed InvITs are mixed, with India Grid Trust up 28% and IRB InvIT down 46% from the issue price. Overall, we believe that PGInvIT offers an attractive proposition for investors willing to invest in a niche asset class.

POWERGRID Infrastructure Investment Trust IPO Initiation: The Art of Power

India

Power Grid Corporation of India Limited has been established by the Government of India as the central transmission utility of India. The mandate for the corporation is establishment and operation of EHV. AC & HVDC transmission lines, sub-stations, load dispatch centers and communications facilities throughout India.

Power Grid Corporation Of India (PWGR IN)

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Power Grid Corporation Of India (PWGR IN)

Profit aided by other income

It bagged INR90-100b in awards in recent months, which is a positive sign, given a declining order book. Nevertheless, the capex trajectory is on a...

Motilal Oswal

HSIE Results Daily: Power Grid Corporation of India, Indostar Capital Finance, PSP Projects

PSP Projects: PSP Projects (PSP) reported revenue/EBITDA/APAT at INR 5/0.6/0.4bn for the quarter, largely in line with our estimate. The company...

HDFC Securities

POWERGRID InvIT IPO Trading - Not a Bad Subscription Result

POWERGRID Infrastructure Investment Trust (PGIT) raised around US$1bn in its India IPO. In this note, we will talk about the trading dynamics.

Sumeet Singh

POWERGRID InvIT IPO - Assets Are Fine, Declining Yield Is Not

POWERGRID Infrastructure Investment Trust aims to raise around US$1bn in its India IPO. PGIT is an investment trust setup to own transmission...

Sumeet Singh

POWERGRID Infrastructure Investment Trust IPO Initiation: The Art of Power

PGInvIT is seeking to raise up to Rs77.3 billion ($1 billion). Overall, we believe that PGInvIT offers an attractive proposition for investors...

Arun George

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