Our Valued Unitholders,
At the outset, I extend my best wishes to you and hope you are safe!
It is my first interaction with you and it is my pleasure to present to you, the first
annual report of PGInvIT, India's first InvIT by a Government entity.
FY 2021-22 has been an exciting first year for PGInvIT. Starting from executing India's
largest InvIT IPO by a Govt. entity, which received overwhelming response from investors
to operating assets efficiently and making distributions as committed, we have commenced
our journey on the path of providing consistent, stable and visible returns to our
unitholders.
Performance Powered by AAA
The completion of first year also reinforces our belief and optimism in our unique
value proposition of AAA - Assets, Assurance and Advantage.
The five TBCB Assets housed under five Special Purpose Vehicles that we own are fully
operational and revenue generating and have consistently exhibited sound operational track
record. The Assurance comes in the form of Fixed tariffs for 35 years period without
regulatory risk and the backing of an experienced, world-class Sponsor and Project
Manager, POWERGRID. I am sure with their expertise in operating and managing power
transmission assets, the InvIT assets will continue to achieve high availability. Besides,
Sponsor's large pool of transmission assets and monetisation targets under National
Monetisation Pipeline backed by our low leverage provides us a distinct Advantage. In
addition, the Availability-based tariffs and incentives provide additional Advantage to
PGInvIT ensuring stability.
Delivering on Commitments
PGInvIT aims to deliver returns to its unitholders through operational efficiency and a
growth strategy that is value accretive. In this direction, I am happy that in the first
year, PGInvIT has been able to achieve both.
Riding on excellent operational performance, despite a challenging environment due to
COVID-19 pandemic, the Trust declared three consecutive distributions aggregating '10.5
per unit for the year and made two acquisitions, funded largely through debt raised at
very competitive rates.
We are happy to note that the investors' confidence in PGnvIT continues post-IPO also.
We look forward to our investors' continued support.
Way Forward
We remain focussed on capitalising on our strengths and on the opportunities emerging
from GoI's monetisation thrust and yearly monetisation targets for our Sponsor to create
value for our investors and to deliver on our growth strategy.
We envisage acquisition of residual 26% equity stake of our Sponsor in PKATL, after
July 2022 in accordance with the transmission service agreements. We are looking forward
to Sponsor's monetisation programme for the year 2022-23 while simultaneously scouting for
opportunities outside of POWERGRID.
Thanks
We thank GoI for creating an enabling environment for emergence of infrastructure
investment trusts as a unique financial instrument, which can provide stable returns to
investors over the long term. With their ability to channelise long-term global financial
capital, InvITs can support investment cycle in the country. We would also like to thank
SEBI and other govt. agencies like the IRDAI, PFRDA for their policy decisions which would
go a long way in increasing the liquidity and providing access to long tenure debt. These
bode well for the progress of the nation while providing an avenue for all types of
investors seeking predictable returns.
Our first Chairman, Smt. Seema Gupta demitted the office on May 31, 2022 upon her
superannuation from POWERGRID. We would like to place on record our deep appreciation and
gratitude for her invaluable contribution and guidance during both pre and post IPO period
of PGInvIT. We would also like to express our gratitude to Mr. M. N. Venkatesan and Mr.
Sunil Kumar Sharma, whose tenure as Independent Directors ended during the year. Their
experience, knowledge, guidance and support, despite the pandemic, played a key role
especially during our initial public offer.
I look forward to working with my colleagues on the Board and the management team at
PGInvIT to keep working towards making PGInvIT a rewarding investment for our investors.
Thank you for being a part of PGInvIT story.
Yours Sincerely,
Abhay Choudhary
Chairman