IndiGrid completes acquisition of two power transmissions assets from Sterlite Power

Our Bureau Mumbai | Updated on July 08, 2019 Published on July 08, 2019

India Grid Trust, an infrastructure investment trust, has completed the acquisition of two power transmission assets — NRSS XXIX Transmission Ltd (NTL) and Odisha Generation Phase II Transmission Ltd (OGPTL) — from Sterlite Power for an enterprise value of ₹5,025 crore.

IndiGrid had signed definitive documents to acquire the two assets in April 2019.

Also read: IndiGrid to buy ₹11,500-cr electricity transmission assets from Sterlite Power

The acquisition has been funded through a 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 raised by IndiGrid and OGPTL, the company said in a statement.

IndiGrid had issued ₹1,400 crore of AAA-rated debentures and ₹200 crore worth AAA-rated Market-Linked Debentures, first of its kind issuance by an InvIT in India. A loan of ₹550 crore at OGPTL has also been extended by Axis Bank.

Post-acquisition, IndiGrid’s net debt to assets under management (AUM) is below 49 per cent, significantly lower than the permissible leverage cap of 70 per cent.

Harsh Shah, CEO, IndiGrid said, “With these acquisitions, IndiGrid’s AUM has increased close to three times from ₹3,800 crore to ₹10,660 crore in a span of two years since listing. With the recent capital raise anchored by KKR and GIC and the framework agreement with Sterlite Power, we will be able to reach ₹17,000 crore of assets under management and remain well on our way to achieving ₹30,000 crore of assets under management by 2022, while providing predictable and growing distributions to our investors.”

Published on July 08, 2019
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