IndiGrid sees growth potential in sale of transmission assets

ksenia kondratieva Mumbai | Updated on December 11, 2018

IndiGrid is also evaluating third-party assets, which could be an even bigger opportunity.

IndiGrid, an infrastructure investment trust sponsored by Sterlite Power, is eyeing growth via both organic and inorganic routes, Harsh Shah, IndiGrid CEO, told BusinessLine.

According to him, the growth opportunity for IndiGrid is two-fold. The first is through the assets of its sponsor, Sterlite Power, for which IndiGrid has the buying rights.

Currently, Sterlite Power has a pipeline of at least seven assets — under various stages of operation and construction — worth around ₹15,000 crore.

IndiGrid is also evaluating third-party assets, which could be an even bigger opportunity. Industry watchers estimate that transmission assets worth at least ₹ 30, 000 crore are either on the block now or could be looking for buyers in the near future. This includes the assets of Essar Power, Megha Engineering & Infrastructure (MEIL), Jaiprakash Power Ventures and Kalpataru Power.

“We have just concluded four acquisitions including one third-party acquisition, and we have approval from investors to raise capital up to ₹3,000 crore. At this point, we don’t have any concrete plans, but we will keep looking for different third-party assets,” Shah said.

Tracking the growth

Earlier this year, IndiGrid acquired a 46 per cent stake in Patran Transmission from Techno Electric & Engineering Company for ₹232 crore.

In its annual report, IndiGrid said the transmission segment’s share in the total power sector investments is expected to rise to 33 per cent over FY17 to FY21, with estimated investment of (in the transmission sector) ₹3.1-3.3 lakh crore over 2019-23.

IndiGrid has reported a consolidated revenue of ₹165 crore in the quarter ended September 30. For the 10 months ended 31 March 2018, InvIT’s consolidated revenue stood at ₹447.6 crore. InvIT has distributed ₹9.56 per unit in FY18, and is targeting a DPU of ₹12 for FY19. According to Shah, IndiGrid has seen increased participation of retail investors and NHIs: their share in total ownership has increased from 15 per cent to 25 per cent.

Published on December 11, 2018

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