India Grid Trust buys 3 transmission assets, picks up 46% stake in Patran
Mumbai: India Grid Trust (IndiGrid), an infrastructure investment trust, has completed the acquisition of three transmission assets from its sponsor, Sterlite Power Grid Ventures Ltd, the company said on Tuesday.
The three assets include RAPP Transmission Co., Purulia and Kharagpur Transmission Co. and Maheshwaram Transmission (together known as MRP).
The company said that both acquisitions are highly accretive and will increase portfolio internal rate of return to 11% at current price. They will enable IndiGrid to deliver a distribution per unit of at least Rs12 for the next five years.
“In line with its vision of reaching an asset under management of Rs300 billion, IndiGrid has successfully completed the first set of the acquisitions. Further, we have signed a definitive agreement with Techno Electric. The fundamentals of the power transmission sector in India remain robust and IndiGrid will continue to acquire assets from both the Sponsor and third parties to further increase portfolio IRR,” said Pratik Agarwal, chief executive of IndiGrid.
IndiGrid has also acquired 46% stake in Patran Transmission Co. Ltd (PTCL) from Techno Power Grid Co. Ltd, Techno Electric & Engineering Co. Ltd and its nominee shareholders. The sum paid for the investment in PTCL is Rs232 crore.
The sum paid for the transmission assets from Sterlite Power Grid Ventures is Rs1,410 crore. The acquisition will be financed by a Rs1,000 crore 10-year loan and a Rs420 crore short-term loan, which would be refinanced at a later date.
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