India Grid Trust (IndiGrid) is an Indian power sector infrastructure investment trust (InvIT), sponsored by KKR & Sterlite Power (SPTL). Established on 21 October 2016, the entity is registered with

SEBI The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an execut ...

pursuant to the InvIT regulations to own

power transmission Power transmission is the movement of energy from its place of generation to a location where it is applied to perform useful work. Power is defined formally as units of energy per unit time. In SI units: :\text = \frac = \frac Since the deve ...

and

renewable A renewable resource, also known as a flow resource, is a natural resource which will replenish to replace the portion depleted by usage and consumption, either through natural reproduction or other recurring processes in a finite amount of ti ...

assets. Harsh Shah is the

CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especiall ...

and Director of IndiGrid and Jyoti Kumar Agarwal is the

CFO The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financi ...

. As of March 2021, IndiGrid owns 14 operating projects consisting of 40 transmission lines with more than 7,570 ckms length and 11 substations with 13,550 MVA transformation capacity. IndiGrid is publicly listed on the Indian stock exchanges - NSE and

BSE BSE may refer to: Medicine * Bovine spongiform encephalopathy, also known as mad cow disease, a neurodegenerative disease of cattle * Breast self-examination Stock exchanges * Bahrain Stock Exchange, Bahrain * Baku Stock Exchange, Azerbaijan * ...

History

In 2014, the Securities and Exchange Board of India (SEBI) introduced Infrastructure Investment Trusts (InvITs) regulations to support growth of infrastructure sector in India. IndiGrid was established with Sterlite Power as its sponsor in October 2016, as per the SEBI InvITs Regulations. In May 2017, IndiGrid opened its initial public offer (IPO) to raise ₹2,250. It is the first power sector InvIT and the second InvIT to get listed on exchange after IRB InvIT Fund. In June 2017, IndiGrid got listed on BSE, NSE exchanges with two operational projects. Before the opening of IPO, IndiGrid had raised over Rs 1,012 crore from anchor investors such as Deutsche Global Infrastructure Fund,

Credit Suisse Credit Suisse Group AG is a global Investment banking, investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all Financial centre, major financial centers around the w ...

(

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...

), Reliance Nippon Life Insurance Company, Copthall Mauritius Investment and Edelweiss Tokio Life Insurance Company. In May 2019, IndiGrid raised over ₹ 2500 cr of primary capital through preferential issue allotment to KKR, GIC (23 & 20% stake respectively) and other eligible capital market investors. In September 2020, IndiGrid unitholders approved induction of global investment firm KKR's associate Esoteric II as a sponsor with special majority (> 75 per cent voting). In December 2020, IndiGrid announced a multi-year collaboration agreement with IBM to build an

artificial intelligence Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans. Example tasks in which this is done include speech r ...

(AI)-enabled asset management platform. In March 2021, IndiGrid raised equity capital of INR 1,284 crs by way of Rights Issue to maintain leverage headroom and fund future acquisitions. The rights issue price has been fixed at ₹110 per unit.

Portfolio Assets

In June 2017, IndiGrid was listed on Indian Stock Exchanges with two Initial Portfolio Assets with AUM of INR 38 billion - Bhopal Dhule Transmission Company Limited and Jabalpur Transmission Company Limited, with a total network of 8 transmission lines of around 1,936 ckms and 2 substations of 6,000 mva capacity across 4 states. In February 2018, IndiGrid completed the acquisition of 3 transmission assets from its sponsor Sterlite Power Grid Ventures Ltd for Rs 1,410 crore. The assets were Purulia & Kharagpur Transmission Company Limited, RAPP Transmission Company Limited and Maheshwaram Transmission Limited. In September 2018, IndiGrid completed the Rs 232-crore investment in Patran Transmission Company (PTCL). This was IndiGrid's first investment in a third-party asset. In July 2019, IndiGrid completed the acquisition of two power transmission assets from Sterlite Power for an enterprise value of Rs 5,025 crore. These two assets are NRSS XXIX Transmission (NTL) and Odisha Generation Phase-II Transmission (OGPTL). In March 2020, IndiGrid completed the acquisition of its ninth transmission asset from Sterlite Power at a value of US$134 million or Rs 1,020 crore, with the acquisition of East-North Interconnection (ENICL). In May 2020, IndiGrid signed an agreement to acquire 100% stake in a

asset at

Jhajjar Jhajjar is a town in Jhajjar district in the Indian state of Haryana. The city is situated on the road connecting Rewari to Rohtak (NH-352), Loharu to Meerut (NH334B), Charkhi Dadri to Delhi and Gurgaon to Bhiwani. Jhajjar is located west ...

Haryana Haryana (; ) is an Indian state located in the northern part of the country. It was carved out of the former state of East Punjab on 1 Nov 1966 on a linguistic basis. It is ranked 21st in terms of area, with less than 1.4% () of India's land ...

for Rs 310 crore from current owners Kalpataru Power Transmission and Techno Electric & Engineering Company. During the same time (August 2020), IndiGrid acquired another power transmission asset – Gurgaon Palwal Transmission (GPTL) project at an enterprise value of around Rs 1,080 crore. In November 2020, IndiGrid signed a share purchase agreement to acquire 74% stake in Parbati Koldam Transmission Co. Ltd. from

Anil Ambani Anil Dhirubhai Ambani (born 4 June 1959) is an Indian businessman. He was the chairman of Reliance Group (also known as Reliance ADA Group), which was created in July 2006 following a demerger from Reliance Industries Limited. He leads a numb ...

group's

Reliance Infrastructure Reliance Infrastructure Limited (R-Infra), formerly Reliance Energy Limited (REL) and Bombay Suburban Electric Supply (BSES), is an Indian private sector enterprise involved in power generation, infrastructure, construction and defence. It is p ...

Ltd. The enterprise value of the transmission asset was around Rs 900 crore (US$121.6 million). Taking this into consideration, an acquisition of 74% of shares should translate into a deal value of Rs 666 crore (US$90 million). In December 2020, IndiGrid Trust entered into an agreement to acquire 100% stake in FRV Andhra Pradesh Solar Farm-I Pvt. Ltd and FRV India Solar Park II Pvt. Ltd. From FRV Solar Holdings XI B.V. In March 2021, IndiGrid InvIT acquired NER-II Transmission Ltd from Sterlite Power at an enterprise value of Rs 4,625 crore. This is the largest single asset deal in the Indian Transmission sector. With this acquisition, IndiGrid's AUM (Asset Under Management) increased 34 per cent to Rs 20,000 crore.

References

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External links

India Grid Trust (IndiGrid)
Electric power transmission system operators in India Indian companies established in 2016 Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange Kohlberg Kravis Roberts companies