India Grid Trust (IndiGrid) has completed acquisition of 100% shareholding and economic interest in Khargone Transmission Company (KTL) from Sterlite Power Transmission (SPTL). IndiGrid and SPTL signed the binding share purchase agreement for the acquisition on January 21, 2023, dependent upon and pursuant to receipt of unitholders’ consent, regulatory and other relevant approvals as well as completion of contractual obligations. IndiGrid received its unitholders’ approval on February 23, 2023.
Acquired at an enterprise value of around Rs 1500 crore, the addition of KTL to the portfolio will take IndiGrid’s Assets Under Management (AUM) to around Rs 22700 crore and the company’s overall asset base to around 8,416 ckms of Transmission Lines and around 17,550 MVA of transformation capacity.
The acquisition was funded through a combination of equity, internal accruals, and debt. The net debt/AUM stands at around 61% post this acquisition, providing adequate headroom for future growth against the 70% leverage threshold as per SEBI InvIT Regulations.
India Grid Trust is an Indian power sector infrastructure investment trust.
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