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Sterlite Power sells entire 14.7% stake in India Grid Trust for ₹840 crore

Our Bureau Mumbai | Updated on August 14, 2020

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Institutions, HNIs among buyers

Power transmission company Sterlite Power, has sold off its 14.7 per cent stake in India Grid Trust (IndiGrid) to institutional investors and high net worth individuals (HNIs) for ₹840 crore.

Sterlite Power is the sponsor of IndiGrid, India’s first power sector InvIT; it had held 15 per cent in the InvIT. After selling the stake, Sterlite Power will continue to remain a shareholder of Sterlite Investment Managers (SIML), the investment manager of IndiGrid.

IndiGrid has seen global investment funds such as KKR and GIC pumping in $400 million last year, who jointly own 57 per cent in the InvIT.

Sterlite Power is a global developer of power transmission infrastructure with projects of over 13,315 circuit kms and 23,885 MVA in India and Brazil.

To focus on core business

Pratik Agarwal, Managing Director, Sterlite Power, said: “Sterlite Power is proud to have played a role in creating India’s first power sector InvIT which has grown over the years with participation from marquee investors. We will now focus on our core business as the developer of power transmission assets. We remain committed to executing asset transfers of about ₹6,500 crore as per the framework agreement with IndiGrid.”

Agarwal further added that global financial markets will remain in yield-seeking mode for a considerable period, and this will provide enough capital supply to well-managed REITs and InvITs. “We firmly believe that InvITs will remain a powerful platform to meet the large-scale financing requirements of the infrastructure sector,” he said.

Going forward, Agarwal is of the view that having built a successful platform and completing the required lock-in period, the company will now focus on its core business as a developer of transmission assets in India and Brazil - two of the world’s largest markets for greenfield projects.

Last year, as a part of its monetising strategy, Sterlite Power sold off its power transmission asset in Brazil for $35 million to Vinci Energia FIP – IE. Sterlite Power is increasingly focusing on transmission assets designed to evacuate renewable energy, and many of its assets under development connect the national grid to clean and green sources of power.

Published on August 14, 2020

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