With the acquisition of Gurgaon Palwal Transmission Ltd (GPTL) for an enterprise value of Rs 1,080 crore, IndiGrid's assets under management (AUM) have increased by 9 per cent to Rs 13,300 crore, the infrastructure investment trust said in a statement.
IndiGrid on Monday said it has completed acquisition of GPTL transmission project from Sterlite Power at an enterprise value of Rs 1,080 crore.
With the acquisition of Gurgaon Palwal Transmission Ltd (GPTL) for an enterprise value of Rs 1,080 crore, IndiGrid’s assets under management (AUM) have increased by 9 per cent to Rs 13,300 crore, the infrastructure investment trust said in a statement.
IndiGrid’s asset portfolio will now consist of 10 power transmission projects, with a total network of 25 power transmission lines and seven substations extending over 6,080 circuit km and 10,735 MVA in 15 Indian states.
GPTL is part of Inter State Transmission Scheme (ISTS) network and consists of three gas-insulated substations (GIS) with a total transformation capacity of 3,000 MVA and 270 circuit km of 400 KV transmission lines spread across Uttar Pradesh, Haryana and Rajasthan.
“GPTL is a strategic asset for ensuring reliable power supply in the region which may reduce the carbon emissions by reducing dependence on DG (diesel generator) sets,” it said.
The acquisition of GPTL was envisaged as part of the framework agreement signed with Sterlite Power in April 2019 for acquisition of three assets upon commissioning.
“This acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt,” it said.
With this investment, IndiGrid’s net deb to AUM will be at 53 per cent, significantly below the 70 per cent leverage threshold as per Sebi’s InvIT Regulations.
“This acquisition is in line with our strategy to acquire accretive assets with low operating risk and long-term certainty of cash flows. We continue our efforts to increase unitholders’ returns by creating a solid growth pipeline for the future while providing predictable distribution,” IndiGrid CEO Harsh Shah said.
He further said IndiGrid has another Rs 5,500 crore-pipeline of transmission projects under the framework agreement with Sterlite Power, providing visibility of Rs 18,000 crore of AUM over the next two years.
Commenting on the transaction, Sterlite Power Group CFO Anuraag Srivastava said, “GPTL sale marks our ninth asset transfer to Indigrid. With this, we have transferred about Rs 12,300 crore worth transmission assets to IndiGrid till date.”
Last fiscal, IndiGrid raised Rs 2,510 crore of capital by way of preferential issue which was subscribed by KKR and GIC, amongst other marquee investors.
KKR also acquired majority interest in the Investment Manager of IndiGrid.