Reliance Infrastructure Limited has completed the sale of the entire stake in Parbati Koldam Transmission Company Limited (PKTCL) to Indigrid for ₹900 crore.
RInfra owns 74 per cent in PKTCL, which is located in Himachal Pradesh and Punjab, in a joint venture with Power Grid Corporation of India Limited (PGCIL).
PKTCL operates 458 circuit kilometres of transmission lines constituting an inter-state transmission system for evacuation of power from the Parbati-II HEP and Koldam HEP, both implemented by NTPC. The deal was announced in November 2020 with the signing of a definitive binding agreement between RInfra and IndiGrid and has now been completed with transfer of shares of PKTCL.
Further, the entire proceeds of ₹900 crore will be used to reduce Rinfra's debt. Company executives pointed out that RInfra has reduced its total debt liabilities by six per cent from the deal proceeds. This sale follows the Delhi-Agra (DA) Toll road stake sale to Cube Highways and Infrastructure III Pte Limited for an enterprise value of ₹3,600 crore. With this RInfra has reduced its debt by 25 per cent this year.
For Indigrid, the acquisition is in line with its investment strategy as provided in the trust deed with a focus to ensure stable distribution to unitholders by owning assets with long term contracts. As of September, IndiGrid has distributed ₹39.56 per unit to its investors over the last 14 quarters since its listing, which translates to a total return of 42 per cent.
Recently, IndiGrid acquired power transmission line operator’s Jhajjar KT Transco assets from Kalpataru Power Transmission and Techno Electric & Engineering Company for ₹310 crore. Additionally, it acquired assets of Gurgaon Palwal Transmission Limited (GPTL) from Sterlite Power for ₹1,080 crore.
Also, it has entered into an exclusive framework agreement with Sterlite Power to acquire three projects worth ₹6,500 crore, as and when they are commissioned.
In FY20, IndiGrid raised ₹2,510 crore by way of preferential share issue, which was subscribed by KKR and GIC amongst other investors. IndiGrid’s Assets Under Management (AUM) is estimated to be ₹14,500 crore.