June 6, 2017 / 4:47 AM / 2 months ago

India Grid Trust shares fall on market debut after $350 mln IPO

MUMBAI, June 6 (Reuters) - India Grid Trust's shares fell as much as 6.3 percent on their trading debut on Tuesday, after the fund raised 22.5 billion rupees ($349.73 million) in the country's second-ever initial public offering by an infrastructure investment fund.

India Grid Trust shares were down 3.9 percent at 96.9 rupees by 0440 GMT on the National Stock Exchange, having dropped to a low of 93.70 rupees, compared with their issue price of 100 rupees.

Infrastructure investment trusts and real estate investment trusts are entities that invest in rent-yielding assets and distribute most of their income to shareholders as dividends.

Last month, the first infrastructure investment trust, IRB InvIT, saw a lacklustre opening and shares continue to trade below the issue price. Bankers have attributed the under-performance to the lack of Indian investors' familiarity with the product. ($1 = 64.3300 Indian rupees) (Reporting by Swati Bhat; Editing by Rafael Nam)

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