IndiGrid acquires East North Interconnection Co for Rs 1,020 cr
The Board of the Investment Manager of IndiGrid has approved the acquisition
IndiGrid has acquired power transmission firm East North Interconnection Company (ENICL) for Rs 1,020 crore. ENICL is part of inter state transmission scheme network and consists of two 400 kV transmission lines with a total 900 circuit km across Assam, Bihar and West Bengal.
It was set up to evacuate power from the north-east and eastern states to the northern region of India. The Board of the Investment Manager of IndiGrid approved the acquisition of ENICL.
The acquisition will increase the assets under management (AUM) of IndiGrid by 10% to Rs 12,100 crore. This acquisition will be funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt.
The acquisition is expected to be consummated during Q4/FY20, subject to unitholders' approval, execution of definitive agreements and regulatory approvals. Upon acquisition of ENICL, IndiGrid's net debt/AUM will continue to be below 49 percent.
IndiGrid's portfolio will increase to nine power transmission projects with a total network of 20 power transmission lines that span more than 5,800 circuit km across 13 Indian states post this acquisition.
IndiGrid has another Rs 65 billion (Rs 6,500 crore) pipeline of transmission projects under the framework agreement with Sterlite Power to reach an AUM of Rs 180 billion (Rs 18,000 crore) over next two years. IndiGrid is committed to grow with accretive acquisition of operating projects with long-term stable cash flows and low counter-party risks to achieve Rs 300 billion (Rs 30,000 crore) of AUM by 2022.