Description

Government of Singapore proposes to sell up to 4.36 crore units (4.58%) of IndiGrid Infrastructure Trust with oversubscription option of additional 2.65 crore units (2.78%) through stock exchange mechanism on February 5-6, 2026.

Summary

The Government of Singapore, a public unitholder of IndiGrid Infrastructure Trust (InvIT), has notified stock exchanges of its intention to sell units through the Offer for Sale (OFS) mechanism. The base offer consists of 4,36,31,371 units representing 4.58% of IndiGrid’s unit capital, with an oversubscription option to sell an additional 2,64,59,185 units (2.78%). If fully exercised, the total offering would be 7,00,90,556 units representing 7.36% of the InvIT’s unit capital. The OFS will be conducted through a designated window on BSE and NSE.

Key Points

  • Seller: Government of Singapore (public unitholder)
  • Base Offer: 4,36,31,371 units (4.58% of unit capital)
  • Oversubscription Option: 2,64,59,185 units (2.78% of unit capital)
  • Maximum Offering: 7,00,90,556 units (7.36% of unit capital if oversubscription exercised)
  • Mechanism: Stock exchange OFS window as per SEBI guidelines
  • Trading Platforms: BSE and NSE designated windows
  • Compliance: Follows SEBI circular SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30, 2024
  • Geographic Restrictions: Not for distribution in United States except to Qualified Institutional Buyers

Regulatory Changes

No regulatory changes introduced. The OFS is being conducted in accordance with existing regulations:

  • SEBI Master Circular for Stock Exchanges bearing number SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30, 2024
  • BSE Revised Operational Guidelines for OFS Segment (Notice 20240701-19 dated July 01, 2024)
  • NSE Revised Operating Guidelines of Offer for Sale (Circular 93/2024 dated July 12, 2024)

Compliance Requirements

  • Stock Exchanges (BSE and NSE): Provide separate designated OFS windows for the transaction
  • Bidders and Brokers: Must read the entire notice and comply with OFS guidelines
  • Market Participants: Follow applicable notices and circulars issued by stock exchanges regarding OFS mechanism
  • Distribution Restrictions: Comply with geographic restrictions - no release in United States except to Qualified Institutional Buyers or other restricted jurisdictions

Important Dates

  • February 04, 2026: Notice date - announcement of proposed OFS
  • February 05, 2026 (T Day): First day of OFS - for non-retail investors only
  • February 06, 2026 (T+1 Day): Second day of OFS - for retail investors and non-retail investors with unallotted bids carried forward

Impact Assessment

Market Impact:

  • Potential supply of up to 7.36% of IndiGrid’s outstanding units may create selling pressure
  • Two-tiered offering (non-retail first, then retail) allows institutional price discovery before retail participation
  • Government of Singapore’s divestment signals possible portfolio rebalancing but doesn’t indicate fundamental concerns

Trading Impact:

  • Expected increased trading volumes on February 5-6, 2026
  • Price volatility likely during OFS period
  • Non-retail investors get priority access on T Day
  • Retail investors and unallotted institutional bids processed on T+1 Day

Investor Considerations:

  • Significant block available for acquisition by institutional and retail investors
  • Oversubscription option provides flexibility to seller based on demand
  • OFS mechanism ensures transparent price discovery through stock exchange platform

Impact Justification

Significant divestment by major unitholder representing up to 7.36% of IndiGrid's unit capital, likely to impact unit prices and trading volumes over two-day period