India Grid Trust acquires transmission asset of Sterlite Power Transmission

The company will acquire two more projects going ahead from the sponsor

India Grid Trust, Sterlite Power, IndiGrid, Gurgaon Palwal Transmission, Solar power, Transmission assets, Substations, Power transmission lines, Transformers, Uttar Pradesh, Haryana, Rajasthan

The infrastructure investment trust India Grid Trust has acquired another power transmission asset of Sterlite Power Transmission at an enterprise value of around Rs 1,080 crore. It aims to close three more acquisitions in FY20.

The asset acquired by IndiGrid, Gurgaon Palwal Transmission (GPTL) project, is part of the framework agreement between InvIT and its sponsor Sterlite Power Transmission. The company will acquire two more projects going ahead from the sponsor.

IndiGrid hopes to close another third party deal for a transmission asset and acquire a solar power project in 2020. Today, with GPTL the asset under management (AUM) is Rs 13,000 crore and by the end of FY21 its AUM will be around Rs 18,000 crore.

IndiGrid’s asset portfolio now consists of 10 power transmission projects, with a total network of 25 power transmission lines and seven substations extending over 6,080 circuit km and 10,735 MVA in 15 Indian states.

GPTL is a part of interstate transmission scheme network and consists of three gas-insulated substations with a total transformation capacity of 270 circuit km of 400 kV transmission lines spread across Uttar Pradesh, Haryana and Rajasthan.

The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt.

Earlier in August 2020, Sterlite Power sold almost all its units, representing 14.7 percent of the total, in InvIT to institutional investors and high networth investors, mopping up Rs 840 crore.

Sterlite Power continues to be the sponsor of IndiGrid, and to hold 40 percent stake in the investment manager of IndiGrid where KKR holds the balance 60 percent.

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