Edelweiss-backed fund to buy Essel Infraprojects' assets for Rs 60 billion

Edelweiss Infrastructure Yield Plus (EIYP) fund-backed Sekura Energy has entered into an agreement with Essel Infraprojects to acquire two of its operating transmission assets. Sekura Energy is also looking to acquire another two under-construction transmission assets, once complete. The four assets are together valued at Rs 60 Billion, Essel said in its statement.

“Edelweiss Infrastructure Yield Plus fund-backed Sekura Energy has signed an agreement to acquire a stake in two operating power transmission assets from Essel Infraprojects, namely Darbhanga-Motihari Transmission and NRSS XXXI (B)Transmission,” Essel said in its statement. The deal for these two assets is expected to be closed in the next three months.

The statement added that Sekura will acquire two under-construction assets — Warora-Kurnool Transmission and NRSS XXXVI Transmission — once commissioning is achieved. The two are expected to be completed in FY2020.

“This transaction fits well with the Edelweiss Infrastructure Yield Plus fund (EIYP) strategy of investing in infrastructure assets that can deliver predictable long-term returns to investors. Sekura Energy, an independent platform, invests in long-term yielding opportunities in the power sector,” said Subahoo Chordia, Head of Edelweiss Infrastructure Yield Plus fund. Sekura Energy is the energy-focused platform of EIYP with a focus on investing, acquiring and operating assets in the power sector.  Essel Infra is expected to use cash flows generated from this deal to fund its growth strategy. 

“Essel Group has plans to expand its footprint in emerging infrastructure sectors like water, railways, municipal solid waste, etc. Asset monetisation is an important aspect of our business strategy to create growth capital,” said Rohit Modi, chief executive officer and whole time director for Essel Infraprojects. Company officials added that while the firm would monetise the present transmission portfolio, it will continue to bid for transmission projects in future.