Key Highlights:
- Transaction involves acquisition of 100% equity shares in Khargone Transmission Company (“KTL”) from Sterlite Power Transmission Limited (“SPTL”).
- Share purchase agreement was signed on January 21, 2023, transaction consummated post all requisite approvals.
- Acquisition synergistic with existing 765 kV network in BDTCL as one transmission line terminates in Dhule Substation in Bhopal Dhule Transmission Company Limited (BDTCL), one of IndiGrid’s portfolio asset.
- 15th accretive acquisition since listing in 2017; to add ~INR 850 Mn of net distributable cash flow per year.
Mumbai, Thursday, 2nd March 2023: IndiGrid [BSE: 540565 | NSE: INDIGRID], India’s first listed power sector infrastructure investment trust (InvIT), today announced the completion of acquisition of 100% shareholding and economic interest in KTL from SPTL.
IndiGrid and SPTL signed the binding share purchase agreement for the acquisition on January 21, 2023, dependent upon and pursuant to receipt of unitholders’ consent, regulatory and other relevant approvals as well as completion of contractual obligations. IndiGrid received its unitholders’ approval on 23rd February 2023.
Acquired at an Enterprise Value of ~INR 15 billion, the addition of KTL to the portfolio will take IndiGrid’s Assets Under Management (AUM) to ~INR 227 billion and the company’s overall asset base to ~8,416 ckms of Transmission Lines and ~17,550 MVA of transformation capacity.
The acquisition was funded through a combination of equity, internal accruals, and debt. The net debt/AUM stands at around 61% post this acquisition, providing adequate headroom for future growth against the 70% leverage threshold as per SEBI InvIT Regulations.
KTL is an Interstate Transmission System TBCB project and has been operating commercially since December 2021. It is a Build-Own-Operate-Maintain (BOOM) based project and has a remaining Transmission Service Agreement life of ~32 years with a levelized tariff of INR 1,591 million. The project has 6 elements consisting of one pooling stations at 765/400 kV level of 3,000 MVA capacity and four transmission lines extending over ~626 circuit kilometers. The asset spans across Madhya Pradesh and Maharashtra and terminates in one end at the Dhule substation of BDTCL, IndiGrid’s subsidiary since its IPO. The project is of strategic importance for evacuation of 1,320 MW of power generated by the Khargone Power Plant to 765 kV Khandwa substation to further distribute it downstream and will strengthen the power transmission network in the Central and Western India.
Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said,” The acquisition of KTL is in line with IndiGrid’s strategy to drive growth by adding more value accretive assets to our portfolio and further solidifies our position as a leading electric utility and a sustainable yield platform. Due to KTL’s geographical proximity to our existing BDTCL project, this acquisition provides us an operational leverage and will help us drive operational efficiency.”
About Sterlite Power: Sterlite Power is a leading private sector power transmission infrastructure developer and solutions provider with a robust portfolio of 30 completed, sold and under construction projects covering approximately 14,602 circuit Kms of transmission lines across India and Brazil. The Company has a portfolio of high-performance power conductors, extra-high voltage (EHV) cables and optical ground wires (OPGW). The Company provides bespoke solutions for the upgrade, uprate, and fiberization of existing transmission infrastructure projects. Advancing the carriage toward a green energy-efficient future, Sterlite Power has an increasing focus on integrating renewable energy into the grid. It is the sponsor of India’s first power sector InvIT, listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The Company was also recognized at The Economic Times Innovation Awards 2020 and is a recipient of global awards from S&P Platts and International Project Management Association (IPMA).
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