IndiGrid completes acquisition of two power transmissions assets from Sterlite Power for Rs. 5,025 crores

Mumbai : India Grid Trust, India’s leading infrastructure investment trust, today announced closure of the acquisition of two power transmission assets, NRSS XXIX Transmission Limited (“NTL”) and Odisha Generation Phase II Transmission Limited (“OGPTL”), from Sterlite Power for an enterprise value of  Rs. 5,025 crores. IndiGrid had signed definitive documents to acquire the two assets in April 2019.

The acquisition has been funded through the preference unit issuance worth INR 2,514 crores, subscribed by KKR, GIC and other capital market investors in May 2019. The remaining amount has been funded through debt raise at IndiGrid and OGPTL. For this purpose, IndiGrid has issued INR 1,400 crores of AAA rated debentures and INR 200 crores worth AAA rated Market Linked Debentures, first of its kind issuance by an InvIT in India. A loan of INR 550 crores at OGPTL has also been extended by Axis Bank. Post-acquisition, IndiGrid’s net debt to AUM is below 49% and significantly lower than the permissible leverage cap of 70%, leaving significant debt headroom for future acquisitions.

Following the acquisition, IndiGrid’s AUM has increased from INR 5,220 crores to ~INR 10,660 crores. The InvIT currently manages a portfolio of eight power transmission assets with a total network of 18 power transmission lines that span more than 4,900 circuit kilometers across 11 Indian states. These acquisitions of assets will significantly expand IndiGrid’s portfolio and better enable it to deliver stable and growing yield.