Edelweiss-backed fund buys Essel Infra’s power assets for ₹6,000 cr

Mumbai | Updated on October 17, 2018 Published on October 16, 2018

Edelweiss-backed Sekura Energy Ltd has acquired four power transmission assets from Subhash Chandra-led Essel Infraprojects for ₹6,000 crore.

While two of these assets — Darbhanga-Motihari Transmission Ltd and NRSS XXXI (B) Transmission Ltd — are already operational, Warora-Kurnool Transmission Ltd and NRSS XXXVI Transmission Ltd are expected to be commissioned in FY 2020. The stake in the two under-construction assets will be acquired after the commissioning.

Sekura is a unit of Edelweiss Infrastructure Yield Plus fund focussed on investing in India’s power sector.

The completion of the transaction is contingent upon fulfilment of certain customary regulatory, lender approvals and closing conditions, a statement from Essel Infra said.

According to Essel Infraprojects Ltd CEO and Whole Time Director Rohit Modi, the total enterprise value of four transmission projects divested to Sekura Energy is ₹6,000 crore. The sale is part of Essel Group’s plan to expand its footprint in the emerging infrastructure sectors such as water, railways, municipal solid waste.

Asset monetisation is an important aspect of its business strategy to create growth capital, Modi added.

The company was also looking to divest its renewable portfolio of over 600 MW, half of which is operational.

Greenko, Actis and Tata Power are being considered as possible buyers, according to sources.

Edelweiss’ EIYP fund is registered with the Securities and Exchange Board of India as a Category I Alternative Investment Fund) and is focussed on investing in power transmission, renewable power, roads and highways space and other infrastructure segments.

“With this acquisition, Sekura Energy will be one of the leading asset owners and investors in the power sector,” Avinash Rao, CEO of Sekura Energy, said.

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Published on October 16, 2018
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