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India Grid Trust executes SPA for acquisition of Jhajjar KT Transco from KPTL

30 May 2020 Evaluate
India Grid Trust has executed share purchase agreement (SPA) for acquisition of 100% stake in Jhajjar KT Transco Private (JKTPL) from Kalpataru Power Transmission (KPTL) and Techno Electric & Engineering Company (TEECL). The indicative value of the transaction is Rs 310 crore and is subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. The transaction is also subject to requisite approvals and compliances.

This transaction with KPTL and TEECL also reinforces the opportunity to grow the IndiGrid portfolio through value accretive acquisitions of quality transmission assets. It is also the 2nd transaction with TEECL, after acquisition of Patran Transmission Company (PTCL) in August 2018, thus further strengthening its established association with TEECL as well as beginning of a new relationship with KPTL, a reputed EPC company and developer of infrastructure assets in India.

The acquisition, expected to be consummated over next couple of months and is subject to customary closing adjustments and regulatory approvals, will be funded through a combination of debt and internal accruals. The company’s portfolio will increase to 10 power transmission projects with a total network of 23 power transmission lines that span more than 6,000 circuit kilometers across 14 states post this acquisition.

India Grid Trust is the first Infrastructure Investment Trust (InvIT) in the Indian power sector.

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