Mumbai: India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT) sponsored by Sterlite Power Grid Ventures Ltd, will raise ₹2,560 crore of primary capital through a qualified institutional placement that begins today, a person aware of the development told Mint. Of this, private equity investors KKR and GIC will subscribe up to ₹2,060 crore of the issue, the person said.
The proceeds of the QIP will be used to acquire transmission assets. IndiGrid recently signed agreements to acquire five transmission assets worth ₹11,500 crore from Sterlite Power, subject to unitholder approval. Already, the Share Purchase agreement has been signed to acquire the two operational assets — NRSS XXIX and OGPTL — and the framework agreement has been signed for three assets to be purchased once they become operational.
With these acquisitions, IndiGrid’s portfolio will increase from six projects to 11 over the next two years, and assets under management will grow from ₹5,300 crore to ₹17,000 crore (post completion of the entire transaction), said the person quoted above.
IndiGrid currently owns 10 independent revenue-generating assets, including eight transmission lines of 1,936 circuit km and two substations of 6,000 MVA capacity.
Additionally, KKR has expressed interest to be a sponsor of IndiGrid alongside Sterlite Power and KKR and Sterlite Power will co-own SIML, the Investment Manager of IndiGrid.
InvITs are trusts that manage income-generating infrastructure assets, offering investors regular yields and a liquid way to invest in infrastructure projects.
In December, ‘Mint’ had reported that Indigrid had started roadshows to raise ₹2,500-3,000 crore in fresh capital and that they had appointed investment banks Citi, Axis Capital and Edelweiss to manage the process.