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IndiaGrid’s ₹1,283.65-crore rights issue opens on April 6

Our Bureau Mumbai | Updated on March 24, 2021

The board of IndiGrid approved the rights issue at its meeting on Tuesday

To issue up to 11.67 crore units at ₹110 apiece; First Indian InvIT to go this route

India Grid Trust (IndiGrid), a power infrastructure investment trust (InvIT) sponsored by global investment firm KKR & Co, intends to raise ₹1,283.65 crore through a rights issue, which will open for subscription on April 6. This would make IndiGrid the first Indian InvIT to raise funds through a rights issue.

IndiGrid will tender up to 11.67 crore units at ₹110 per unit to raise the amount through the rights issue, which will close on April 13.

The units will be tendered at 1:5 .

Following the rights issue, there will be 70.02 crore outstanding units, as against the 58.35 crore as on the date of offer.

‘Superior risk-adjusted returns’

“We see a robust pipeline across transmission and solar sector to continue delivering growth to our investors and reach Assets Under Management (AUM) of ₹30,000 crore over next 2-3 years. The board has been conscious of pricing the issue at a discount to the market price to allow wider participation from all our retail unit-holders. We are also encouraged by the vote of confidence from our sponsor KKR, which has committed to underwrite any under-subscription,” IndiGrid Managing Director and Chief Executive Officer Harsh Shah said.

The platform has scaled up significantly over the last 12 months with acquisitions worth ₹7,500 crore in FY21. Post its last fund raise in 2019, the company made acquisitions worth ₹13,500 crore, taking the total AUM to over ₹20,000 crore.

“This has helped us to deliver on our commitment to generate superior risk-adjusted returns for our investors which is underscored by the sustainable growth in the distribution per unit to ₹12.40 per annum from ₹9.80 at the time of listing,” he added.

The board of IndiGrid approved the rights issue at its meeting on Tuesday.

Earlier on March 6, IndiGrid entered into an agreement to acquire NER-II Transmission Ltd from Sterlite Power for ₹4,625 crore, the country’s single-largest asset deal in power transmission.

Also read: IndiGrid to acquire NER-II from Sterlite Power for ₹4,625 crore

Published on March 24, 2021

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