Sterlite Power seeks Sebi nod to raise Rs 2,650 crore via infrastructure investment trust

NEW DELHI: Billionaire Anil Agarwal promoted Sterlite Power Transmission has sought the approval of the capital market regulator to raise up to Rs 2,650 crore through infrastructure investment trust (InvITs) by March, in what could be the first of its kind of fund raising in power sector. The trust, which will be called India Grid Trust, will house two of the company’s revenue generating transmission projects. The company will use the proceeds to pare debt and for future projects.

“We plan to use Rs 1,600 crore from the proceeds for repayment of external loans while the rest would go to the sponsor for new projects,” Harsh Shah, chief financial officer, Sterlite Power, told ET. Infrastructures developers such as IRB, GMR, IL&FS and Reliance Infrastructure are keen to launch their infrastructure investment trusts, which give them an opportunity to sell their stake in completed projects to the trust, which in turn can raise long-term and tax-free funds from unit holders. Sterlite Power Transmission sees its portfolio of transmission projects more than doubling to be worth Rs 30,000-35,000 crore by 2020. It has also set its sights on technology to get an edge over competition and wants to emerge as a “digital company” by then.

“The InvIT will be our listed vehicle. As we bid for more projects and more projects get operational, we will continue to expand the portfolio of the trust,” Shah said.

Sterlite Power Transmission, which was carved out from Sterlite Technologies, has made subsidiaries Sterlite Power Grid Ventures and Sterlite Infraventures the sponsor and investment manager, respectively, for the trust. Axis Trustee Services is the trustee. “Indian transmission sector still needs big investments and we are optimistic about it. We continue to believe we will be able to grow our portfolio despite healthy competition from other strong players,” Shah said.

Sterlite has a total portfolio of 10 projects worth Rs 11,000 crore, of which four are fully operational, two partially operational and four are at various stages of construction.