Why PgInvit is falling? What happended to PgiInvit BSE Code 543290 in 2023

Title: "Understanding the Recent PGInvit Developments: Why PGInvit Facing Challenges and Falling"

Description: "Discover the reasons behind PGInvit's recent challenges and how it's navigating them successfully. Learn about the ongoing acquisitions and why this could be a potential investment opportunity."

PgInvit Stock price falling, WHY? 

BSE CODE - 543290
NSE CODE  - PGINVIT
SERIES - IV
ISIN - INE0GGX23010

Introduction:

Welcome, investors! In this post, we'll delve into the recent developments surrounding PGInvit and why it's been facing some challenges. We'll also explore its ongoing acquisitions and what this might mean for potential investors.

PGInvit's Current Assets

Let's start by reviewing PGInvit's current assets. As of now, PGInvit has a portfolio of five assets acquired from PowerGrid:

1. Vizag Transmission Limited
2. Power Grid Kala Amb Transmission Limited
3. Power Grid Parle Transmission Limited
4. Powergrid Warora Transmission Limited
5. Power Grid Jabalpur Transmission Limited

These assets were transferred to PGInvit through its IPO from the parent company, POWERGRID. It's important to note that, per SEBI rules, during the initial listing of PGInvit in its IPO, PowerGrid was required to transfer only 74% of the assets to PGInvit, while retaining 26%.

Acquisition of Remaining 26%

Now, after the Lock-in Expiry, PGInvit has the task of acquiring the remaining 26% stake in all five assets. The acquisition dates for this remaining stake are as follows:

• Vizag Transmission Limited - Acquisition completed.
• Power Grid Kala Amb Transmission Limited - Expected in July 2022.
• Power Grid Parle Transmission Limited - Expected in June 2023.
• Powergrid Warora Transmission Limited - Expected in July 2023.
• Power Grid Jabalpur Transmission Limited - Expected in January 2024.

Financing the Acquisitions

To fund these acquisitions, PowerGrid is opting for debt, taking advantage of its status as a government entity to secure loans at very low-interest rates.

Dividends

PGInvit maintains a stable dividend policy, and there is a strong indication that management is committed to preserving this consistency in every quarter, till 2023 ( Dividend in June 2023 Quarter is Indian Rupees 3 ).This stability is a key aspect of PGInvit's operations and success.

Impact on PGInvit's Balance Sheet

As per the latest reports, PGInvit has successfully completed all the acquisitions except for Power Grid Jabalpur Transmission Limited. This ongoing acquisition activity has led to a negative balance sheet. However, it's crucial to note that PGInvit is already generating profits from its operations and is expected to continue doing so, thanks to its low operating expenses, which amount to approximately 10% to 15% of its generated revenue.

Future Outlook

In conclusion, while the negative balance sheet is primarily a result of the remaining 26% stake acquisitions, these acquisitions are expected to contribute to PGInvit's growing revenue and profitability. This presents an opportunity for investors to consider accumulating stocks at current prices, as the company is not incurring losses from its operations.

May be above is the reason why pginvit is falling but it is still expected to give stable and consistent Divends in 2023-2024 also. 

Discalimer : Above information is generalized for ease of understanding to investors, to interpret and understand correctly refer company reports.It is just a view, not an investment advice or recommendation.