IndiGrid unitholders approve KKR as InvIT sponsor with special majority

The PE firm, which earlier withdrew intent to become a sponsor in August, made a fresh application again this month

India Grid trust (IndiGrid) on Tuesday said, its unitholders have approved the induction of Esoteric II Pte, an affiliate of KKR & Co, as a sponsor with a special majority of more than 75 per cent.  The private equity firm, which earlier withdrew intent to become a sponsor in August, made a fresh application again this month.

IndiGrid also looks to add operational solar power generation projects to its current portfolio of transmission assets as a long-term strategy.

“The special resolution to induct Esoteric II as a sponsor was passed with a special majority in the third annual general meeting of IndiGrid held on September 28,” the company said in its statement.

 

On August 3, IndiGrid informed exchanges, Esoteric withdrawing intent to purchase 15 per cent of outstanding units of IndiGrid from Sterlite Power Grid Ventures (SPGVL). The August announcement added, the KKR affiliate also withdrew intend to become a sponsor.

On September 8, IndiGrid said the KKR affiliate has made a new application to be designated as sponsor the InvIT. The notice also added, in the event of less than 75 per cent unitholders approving the move, the KKR affiliate will need to provide an exit option to dissenting unitholders, to become a sponsor.

With more than 75 per cent unitholders approving the move on Monday, KKR will not need to compulsorily pick further stake. Through a Rs 1,084 crores investment made in May 2019, KKR picked 23 per cent stake in IndiGrid. Separately, KKR also owns 60 per cent stake in Sterlite Investment Managers Limited (SIML), the investment manager of IndiGrid.

Part of its long- term strategy, IndiGrid also looks to acquire solar power generation assets, which are already operational. The InvIT will limit its exposure to solar assets at less than 25 per cent of its total revenue. At present, the InvIT owns 11 operating projects consisting of 28 transmission lines.