IndiGrid completes acquisition of 2 transmission assets

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Updated: July 9, 2019 7:45:52 AM

According to IndiGrid, the acquisition has been funded through the preference unit issuance worth `2,514 crore, subscribed by KKR, GIC and other capital market investors in May 2019.

India Grid Trust, India Grid, Sterlite Power, ROFO, Sebi guidelines, RAPPShares of IndiGrid closed Monday’s trading session 4.30% up, at `89.60. Following the acquisition, IndiGrid’s AUM has increased from `5,220 crore to `10,660 crore, according to the release.

IndiGrid, the first infrastructure investment trust (InvIT) in the power sector, announced that it has completed acquisition of two power transmission assets from Sterlite Power for an enterprise value of `5,025 crore. These two assets are NRSS XXIX Transmission (NTL) and Odisha Generation Phase-II Transmission (OGPTL). IndiGrid had signed definitive documents to acquire the two assets in April 2019.

Shares of IndiGrid closed Monday’s trading session 4.30% up, at `89.60. Following the acquisition, IndiGrid’s AUM has increased from `5,220 crore to `10,660 crore, according to the release. It owns eight operating projects consisting of 18 transmission lines with more than 4,900 circuit km (ckm) length and four sub-stations with 7,735 MVA transformation capacity.

According to IndiGrid, the acquisition has been funded through the preference unit issuance worth `2,514 crore, subscribed by KKR, GIC and other capital market investors in May 2019.

The remaining amount has been funded through debt raise at IndiGrid and OGPTL. “For this purpose, IndiGrid has issued `1,400 crore of AAA-rated debentures and `200 crore worth AAA-rated market-linked debentures. A loan of `550 crore at OGPTL has also been extended by Axis Bank. Post-acquisition, IndiGrid’s net debt to AUM is below 49% and significantly lower than the permissible leverage cap of 70%, leaving significant debt headroom for future acquisitions,”it stated.

Harsh Shah, CEO of IndiGrid, said with the recent capital raise anchored by KKR and GIC and the framework agreement with Sterlite Power, IndiGrid will be able to reach `17,000 crore of AUM and stay on its way to achieving `30,000 crore of AUM by 2022.

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