India Grid Trust on Friday said it has completed the largest transmission project deal by acquiring NER-II Transmission (NER-II) from Sterlite Power at an enterprise value of about Rs 4,625 crore.
With this acquisition, India Grid Trust (IndiGrid)'s Asset under Managment (AUM) rose 34% to Rs 20,000 crore ($2.70 billion). The platform's asset portfolio now consists of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit kilometers & 13,350 MVA in 17 Indian states and 1 Union Territory.
The acquisition of NER-II was envisaged as part of the Framework Agreement signed with Sterlite Power in April 2019. On 8 March 2021, India Grid Trust had signed a share purchase agreement to acquire NER-II Transmission from Sterlite Power as part of the framework agreement. The unitholders' also approved the transaction unanimously with 100% of the votes cast in favour of the acquisition in the extra-ordinary general meeting held on 19 March 2021.
NER-II is part of Inter State Transmission Scheme (ISTS) network, and was awarded on a Build, Own, Operate, Maintain (BOOM) basis with a contractual period of 35 years. The project has 11 elements including two substations of 1,260 MVA capacity and four transmission lines extending over 830 circuit kilometers. The asset spans across Assam, Arunachal Pradesh and Tripura and is of strategic importance for the delivery of power in one of the toughest regions in the country. This project will strengthen the power transmission network in the North Eastern States and address the of transmission, sub-transmission, and distribution system needs of the region.
India Grid Trust's consolidated net profit dropped 28.3% to Rs 94.58 crore on a 27.6% rise in net sales to Rs 438.10 crore in Q3 December 2020 over Q3 December 2019.
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Shares of India Grid Trust advanced 2.03% to close at Rs 136.42 on BSE.
IndiGrid is the first Infrastructure Investment Trust in the Indian power sector. It owns 13 operating projects consisting of 38 transmission lines with more than 7,570 ckms length and 11 substations with about 13,350 MVA transformation capacity. IndiGrid has assets under management (AUM) worth about Rs 20,000 crore. The investment manager of IndiGrid is majority owned by KKR.
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