IndiGrid acquires transmission asset from Sterlite Power for $134 million

India Grid Trust (IndiGrid) on Tuesday (24 March 2020) announced the acquisition of a transmission asset, East North Interconnection Company, from Sterlite Power at a value of $134 million.

With this acquisition, IndiGrid's assets under management (AUM) will increase by 10% to about $1.6 billion. IndiGrid's asset portfolio will increase to nine power transmission projects, with a total network of 20 power transmission lines spanning across more than 5,800 circuit kilometres across 13 Indian states.

East North Interconnection Company (ENICL) is a part of the Inter State Transmission System (ISTS) network developed by Sterlite Power. It consists of two 400 KV transmission lines with a total about 900 circuit kilometers across Assam, Bihar and West Bengal.

The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed funding of Rs 900 crore from Axis Bank.

Earlier in this financial year, IndiGrid raised $330 million (Rs 2510 crore) of capital by way of preferential issue which was subscribed by KKR and GIC amongst other marquee investors. It acquired NRSS XXIX and OGPTL projects from Sterlite Power for $671 million (about Rs 5100 crore). In addition to that, it entered into an exclusive framework agreement with Sterlite Power to acquire three more projects worth about Rs 6500 crore as and when they are commissioned. KKR also acquired majority interest in the Investment Manager of IndiGrid.

Shares of India Grid Trust declined 2.20% at Rs 86.99. The scrip hit its 52-week low at Rs 80.85 on 27 March 2019.

India Grid Trust's consolidated net profit surged 155.9% to Rs 131.84 crore on a 98.8% jump in net sales to Rs 343.39 crore in Q3 December 2019 over Q3 December 2018.

India Grid Trust is an infrastructure investment trust based out of India. The Investment objectives of the trust are to undertake activity as an infrastructure investment trust in accordance with the provisions of the infrastructure investment trust (InvIT) Regulations. The Trust is focused on providing stable and sustainable distributions to its unit holders. The Investment manager for the Trust is Sterlite Infraventures.

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