Sterlite Power Transmission (SPTL), a company that was demerged from Sterlite Technologies, has initiated a process to raise ₹2,500-3,000 crore through Infrastructure Investment Trusts (InvITs). The company has mandated Morgan Stanley and Edelweiss Financial Services as merchant bankers for the process.
The company would use the proceeds to pare debt and for funding existing projects in the power transmission business, as many as three sources close to the development told BusinessLine .
“The process has begun, but it’s in the early stages. At present, the company is looking at raising about ₹2,500-3,000 crore, but that number is yet to be finalised. The final figure could change, but I expect it to be around these figures only,” one of the sources said.
An InvIT, much like mutual funds, enables individuals to pool in investments into the infrastructure sector and earn a return on the income (after deducting expenditures). InvITs can invest in infrastructure projects, either directly or through special purpose vehicles (SPVs). In case of public private partnership (PPP) projects, such investments can only be through SPVs.
The process for registration with securities market regulator SEBI will commence soon, probably this quarter itself, another source added.
In India, InvITs are regulated by SEBI and are mandated to be listed.
The sources declined to comment as the discussions are private, while Sterlite Power, Morgan Stanley and Edelweiss Financial Services also declined to comment.
Unlisted SPTL, which is in the businesses of power products (conductors and cables) and power transmission grid, operates about eight power transmission projects and has debt of about ₹5,500 crore.
Sterlite Technologies had commenced the demerger of SPTL into an independent and unlisted entity, effective April 2015. Following the demerger, completed in May 2016, Sterlite Technologies became a pure play telecom and integrated network provider.
Sterlite Technologies has retained about 1,500-1,600 people, while Sterlite Power has about 700 employees.
Sterlite Power has assets in Silvasa, Haridwar and Jharsuguda, while Sterlite Technology has retained the optical fibre cable manufacturing plant in Silvasa and Brazil and optical fibre plants in Aurangabad and China.