IndiGrid [BSE: 540565 | NSE: INDIGRID], India’s first listed power sector infrastructure investment trust (InvIT), today announced the completion of acquisition of 100% shareholding and economic interest in KTL from SPTL.
IndiGrid and SPTL signed the binding share purchase agreement for the acquisition on January 21, 2023, dependent upon and pursuant to receipt of unitholders’ consent, regulatory and other relevant approvals as well as completion of contractual obligations. IndiGrid received its unitholders’ approval on 23rd February 2023.
Acquired at an Enterprise Value of ~INR 15 billion, the addition of KTL to the portfolio will take IndiGrid’s Assets Under Management (AUM) to ~INR 227 billion and the company’s overall asset base to ~8,416 ckms of Transmission Lines and ~17,550 MVA of transformation capacity.
The acquisition was funded through a combination of equity, internal accruals, and debt. The net debt/AUM stands at around 61% post this acquisition, providing adequate headroom for future growth against the 70% leverage threshold as per SEBI InvIT Regulations.
KTL is an Interstate Transmission System TBCB project and has been operating commercially since December 2021. It is a Build-Own-Operate-Maintain (BOOM) based project and has a remaining Transmission Service Agreement life of ~32 years with a levelized tariff of INR 1,591 million. The project has 6 elements consisting of one pooling stations at 765/400 kV level of 3,000 MVA capacity and four transmission lines extending over ~626 circuit kilometers. The asset spans across Madhya Pradesh and Maharashtra and terminates in one end at the Dhule substation of BDTCL, IndiGrid’s subsidiary since its IPO. The project is of strategic importance for evacuation of 1,320 MW of power generated by the Khargone Power Plant to 765 kV Khandwa substation to further distribute it downstream and will strengthen the power transmission network in the Central and Western India.
Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said,” The acquisition of KTL is in line with IndiGrid’s strategy to drive growth by adding more value accretive assets to our portfolio and further solidifies our position as a leading electric utility and a sustainable yield platform. Due to KTL’s geographical proximity to our existing BDTCL project, this acquisition provides us an operational leverage and will help us drive operational efficiency.”
IndiGrid [BSE: 540565 | NSE: INDIGRID] is the first Infrastructure Investment Trust (“InvIT”) in the Indian power sector. It owns 17 power projects, consisting of 46 transmission lines with more than ~8,416 ckms length, 13 substations with ~17,550 MVA transformation capacity and 100 MW (AC) of solar generation capacity. IndiGrid has assets under management (AUM) of over ~₹ 227 billion (~USD 2.7 billion). The investment manager of IndiGrid is wholly owned by KKR.
For more details, please visit www.indigrid.co.in