IndiGrid has approved the acquisition of three power transmission assets from its sponsor Sterlite Power Grid Ventures at a value of Rs 14.9 billion. These acquisitions result in a 40% increase in AUM, from Rs 38 billion to Rs 53 billion. The three assets consists of 5 transmission lines aggregating 1,425 ckms thus increasing its total portfolio to 13 transmission lines and 2 substations across 8 states.
The proposed acquisition will be funded entirely through debt in order to utilize the available headroom. These assets have the same characteristics as the existing assets of IndiGrid which is AAA rated. This acquisition will increase IndiGrid’s debt to assets ratio from 26% to nearly 49%. The transaction is subject to customary regulatory and unit holders approvals and is expected to be completed in Q1 CY18.
IndiGrid is the first Infrastructure Investment Trust (InvIT) established to own inter?state power transmission assets in India.
