Acquisition to increase the IndiGrid’s assets under management by 10% to $1.75bn
India’s infrastructure investment trust IndiGrid will acquire Gurgaon Palwal Transmission project (GPTL) from Sterlite Power in a deal valued at INR10.8bn ($140m).
The acquisition is expected to increase the IndiGrid’s assets under management (AUM) by 10% to $1.75bn and portfolio to ten power transmission projects.
Additionally, the firm will own a total network of 25 power transmission lines and seven substations across 15 Indian states.
A part of Inter State Transmission Scheme (ISTS) network, GPTL consists of three gas-insulated substations (GIS) with a total transformation capacity of 3,000MVA spread across Uttar Pradesh, Haryana and Rajasthan.
IndiGrid seeks to acquire solar projects
Additionally, IndiGrid plans to acquire solar projects that are backed by power purchase agreements, operational track record and financially strong counter-parties or off-takers, in a bid to improve returns to unitholders.
IndiGrid CEO Harsh Shah said: “GPTL acquisition is in line with our strategy for acquiring transmission projects to grow returns for unitholders. Over last 12 months, we have raised ~INR 25.1 Bn (~US$ 353 Mn) of capital via preference issue and acquired ~ INR 75 Bn (~ US$ 1 Bn) worth of transmission assets.
“It underlines our ability to grow our portfolio consistently and execute our strategy of enhancing investor returns while maintaining a strong balance sheet.
“Solar project portfolio will remain a minor percentage of our sizable AUM and focused on strong counter parties like SECI / NTPC.”
Last year, IndiGrid has closed a preference unit issuance worth $363m, with KKR and GIC investing $157m and $142m, respectively. This results in KKR and GIC to jointly own 42% of IndiGrid’s outstanding units.