Sterlite Power aims to grow India Grid’s AUM to Rs30,000 crore by FY22
Group CEO Pratik Agarwal says Sterlite Power expects to invest $4 billion in new projects by FY22
Mumbai: Sterlite Power, which sponsors the India Grid (IndiGrid) infrastructure investment trust, aims to grow the latter’s assets under management to Rs30,000 crore by FY22. With five operating power transmission assets from Sterlite and a scheduled 46% stake purchase in Patran Transmission Co Ltd, the trust’s AUM will be roughly Rs6,000 crore by the end of this quarter.
“We are one full year ahead in assets under management that we had forecast in our IPO,” Pratik Agarwal, CEO of IndiGrid and group CEO, Sterlite Power, told Mint. “When we integrate all of Sterlite Power’s existing assets into IndiGrid, the AUM will touch Rs20,000 crore. The remaining Rs10,000 crore of our target will either come from the sponsor or IndiGrid will acquire it independently.”
In FY19, the already commissioned East-North Interconnection Ltd (with 5-year revenue average of Rs142 crore) and the Northern Region Strengthening Scheme 29 (annual revenue average of Rs503 crore) are scheduled to be added to IndiGrid’s portfolio.
“In FY19, we’re looking to deliver Rs12 per unit as dividend,” Agarwal said. The figure for 10 months ended FY18 was Rs9.56.
For Q4 FY18, IndiGrid reported Ebitda of Rs132.6 crore. For 10 months ended 31 March 2018, consolidated revenue stood at Rs447.6 crore and Ebitda at Rs415.5 crore.
Sterlite Power has five projects involving investment of about $4 billion at various stages of completion.
Agarwal said the company expects to invest another $4 billion in new projects by FY22.
“Power consumption is seeing annual demand growth of 8%. Sterlite has transmission assets in India and Brazil, the two largest markets in the world,” Agarwal said. “We’re also evaluating projects in Argentina, Mexico, Chile and even the UK, particularly as many of these countries build new generation plants in renewable energy.”
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