IndiGrid, an infrastructure investment trust, has successfully finalized the purchase of a 300 MW solar project valued at Rs 1,550 crore. This acquisition expands IndiGrid’s portfolio to include 19 solar projects across eight states in India, totaling 1.1 GWp in generation capacity.
IndiGrid is India’s first infrastructure investment trust (InvIT) established to own and operate power transmission assets. Formed in 2016, it is managed by Sterlite Investment Managers Limited and is listed on the Indian stock exchanges. The trust focuses on acquiring operating power transmission assets with stable cash flows, providing investors with a stable and growing income.
IndiGrid’s portfolio includes transmission assets across various states in India, contributing to the country’s infrastructure development and the efficient transmission of electricity. The trust is committed to delivering sustainable value to its unitholders while ensuring the reliable transmission of power across India.
The company’s total Assets Under Management now amount to Rs 28,200 crore. In an official statement, IndiGrid, India’s premier listed power sector infrastructure investment trust (InvIT), announced the completion of the 300 MW AC solar asset transaction valued at approximately Rs 15,500 million. This valuation excludes net working capital and cash adjustments, aligning with the terms of the share purchase agreement signed in January 2024.
This acquisition has been financed through a mix of equity, internal earnings, and borrowing. It will contribute Rs 80 crore in net distributable cash flow to IndiGrid annually. After this acquisition, the net debt/AUM ratio will be 63 per cent. RSUPL, operational since December 2021, is situated in the high solar radiation area of Jaisalmer, Rajasthan. It has a 25-year PPA with Solar Energy Corporation of India (SECI) to supply power at a rate of Rs 2.71 per unit.
RSUPL represents a strategic addition to IndiGrid’s portfolio, marking its largest capacity project at a single site. According to Harsh Shah, Chief Executive Officer and Whole Time Director of IndiGrid, “RSUPL is a high-quality asset that will contribute accretive NDCF for IndiGrid. We are enthusiastic about this transaction as it aligns with our goal of becoming a sustainable and superior risk-adjusted yield platform for our investors.”
IndiGrid stands as the pioneer Infrastructure Investment Trust (InvIT) in India’s power sector, proudly holding ownership of 36 power projects. Among its assets are 46 transmission lines, extending over 8,468 circuit kilometers. It also includes 13 substations, boasting an approximate transformation capacity of 17,550 MVA, and an impressive solar generation capacity of around 855 MWAC.
