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India Grid Trust completes acquisition of Raichur Sholapur Transmission Company

10 Nov 2022 Evaluate

India Grid Trust (IndiGrid) has completed acquisition of Raichur Sholapur Transmission Company (RSTCPL) from the consortium of Patel Engineering (PEL), Simplex Infrastructure (SIL) and BS (BSL) at an enterprise value of around Rs 250 crore. RSTCPL consists of around 208 ckms of 765 kV transmission line network between Raichur and Sholapur. It is a critical project of the Inter State Transmission Scheme (ISTS) network of the country and one of the first transmission projects under a tariff based competitive bidding regime. The project has been operational for over 8 years with established collection track record under the Point of Connection (PoC) mechanism (operated by Central Transmission Utility of India).

The acquisition is in line with the IndiGrid’s strategy to acquire value-accretive assets with low operating risks and derisked collection profile. With this acquisition, IndiGrid’s asset portfolio now consists of 16 power projects (15 Operational and 1 Under Construction) spread across 19 Indian States and 1 Union Territory in the country. The acquisition of RSTCPL was envisaged as part of the share purchase agreement signed with the Sellers in July 2022 for the acquisition of 100% equity interest in the project. This acquisition has been funded by mix of equity, internal accruals and debt. With this investment, IndiGrid’s net debt/AUM will be at around 57%, significantly below the 70% leverage threshold as per SEBI InvIT Regulations.

India Grid Trust is an Indian power sector infrastructure investment trust.

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