IndiGrid acquires solar power plant at an enterprise value of Rs 1,550 cr

Infrastructure investment trust IndiaGrid on Friday said it has completed the acquisition of 300 MW solar project at an enterprise value of Rs 1,550 crore.

With this asset addition, IndiGrid's portfolio now consists of 19 solar projects across eight states of the country with a total generation capacity of 1.1 GWp.

IndiGrid's total Assets Under Management now stands at Rs 28,200 crore, an IndiGrid statement said.

"IndiGrid, India's first and largest listed power sector infrastructure investment trust (InvIT), today announced that it has consummated transaction of 300 MW AC solar asset for an enterprise valuation of around Rs 15,500 million, exclusive of net working capital and cash adjustments, in line with the share purchase agreement that was signed in January 2024," it said.

This acquisition has been funded through a combination of equity, internal accruals, and debt and will add Rs 80 crore of net distributable cash flow, to IndiGrid, every year.

The net debt/AUM will be 63 per cent post this acquisition.

Operational since December 2021, ReNew Solar Urja Private Limited (RSUPL) is located in the high irradiation region of Jaisalmer, Rajasthan and has a 25-year Purchase Power Agreement (PPA) with Solar Energy Corporation of India (SECI) to sell power generated at a tariff of Rs 2.71 per unit.

RSUPL is a strategic addition to IndiGrid's portfolio as it would be the largest capacity project located at a single site for the company.

"RSUPL is a high-quality asset and will add accretive NDCF for IndiGrid. We are excited about this transaction as it is in-line with our objective to be a sustainable and superior risk-adjusted yield platform for our investors," Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, said.

IndiGrid is the first Infrastructure Investment Trust (InvIT) in the Indian power sector. It owns 36 power projects, consisting of 46 transmission lines with more than 8,468 ckms length, 13 substations with around 17,550 MVA transformation capacity and about 855 MWAC of solar generation capacity.