IndiGrid acquires one transmission asset, eye three more assets in FY21: CEO

MUMBAI: Infrastructure investment trust India Grid Trust has acquired another power transmission asset Sterlite Power at an enterprise value of around Rs 1,080 crore, and aims to close three more acquisitions in the current fiscal year, Harsh Shah, Chief Executive Officer of the former told ET.

The asset acquired by India Grid Trust (IndiGrid), Gurgaon Palwal Transmission
(GPTL) project, is a part of the framework agreement between the InvIT and its sponsor Sterlite Power. The company will acquire two more projects going ahead from the sponsor.


“We will be acquiring one more asset from Sterlite, and we hope to close another third party deal for a transmission asset and acquire a solar power project this year. Today, with GPTL our asset under management is Rs 13,000 crore, we hope by the end of the FY21 our AUM will be around Rs 18,000 crore,” Shah said.

IndiGrid’s asset portfolio now consists of 10 power transmission projects, with a total network of 25 power transmission lines and seven substations extending over 6,080 circuit kilometres and 10,735 MVA in 15 Indian states.

GPTL is part of Inter State Transmission Scheme network and consists of three gas-insulated substations with a total transformation capacity of 270 circuit kilometers of 400 KV transmission lines spread across Uttar Pradesh, Haryana and Rajasthan. This acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt.

In May 2019, KKR – in a first of its kind transaction - had invested Rs 1,084 crore in the InvIT set up by Sterlite Power Transmission and GIC Infra Holdings had chipped in Rs 980 crore. Subsequently, KKR was to buy an additional 15% in the InvIT and become a sponsor, but it withdrew the plan. Earlier this month, Sterlite Power sold almost all its units, representing 14.7% of the total, in the InvIT to institutional investors and high networth investors, mopping up Rs 840 crore. Sterlite Power continues to be the sponsor of IndiGrid, and to hold 40% stake in the investment manager of IndiGrid where KKR holds the balance 60%.