- GPTL acquisition to boost IndiGrid's AUM by ~9% " />
- GPTL acquisition to boost IndiGrid's AUM by ~9% " />
Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Web www.equitybulls.com
Stock Report

| More

IndiGrid looks to acquire US$ 140 Mn (INR 10.8 Bn) transmission project and also intends to add Solar energy in the portfolio

Posted On: 2020-04-10 12:18:39

Key Highlights

- Board of the Investment Manager of IndiGrid has approved acquisition of Gurgaon Palwal Transmission Limited ("GPTL") for up to INR 10.8 Bn (US$ 140 Mn)

- GPTL acquisition to boost IndiGrid's AUM by ~9% to ~ INR 133 Bn (US $ 1.75 Bn)

- 8th accretive acquisition since listing, to add ~ INR 35-40 Cr of net distributable cash flow per year

- Board also approved amendment of Trust Deed to enable IndiGrid's foray into Solar energy

The Board of the Investment Manager of IndiGrid, India's first InvIT in the power sector, has approved the acquisition of Gurgaon Palwal Transmission Limited ("GPTL") from Sterlite Power, at a value of up to INR 10.8 Bn (US$ 140 Mn). This acquisition would increase the AUM of IndiGrid by 10% to US $ 1.75 Bn. IndiGrid's portfolio will increase to ten power transmission projects with a total network of 25 power transmission lines and 7 substations that span across more than 6,080 circuit kilometres & 10,735 MVA across 15 Indian states post this acquisition.

GPTL is part of Inter State Transmission Scheme (ISTS) network and consists of three gas insulated substations (GIS) with a total transformation capacity of 3,000 MVA and ~ 270 circuit kilometers of 400 KV transmission lines spread across Uttar Pradesh, Haryana and Rajasthan. This project is built with substantial focus on environmental, social and governance (ESG) aspects. It is a strategic asset for ensuring reliable power supply in the region which may reduce the carbon emissions by reducing dependence on DG sets. The land requirement for this project is also substantially reduced with innovatively designed vertical GIS substation and monopole towers with micro-piling.

IndiGrid had signed a framework agreement in April 2019 with Sterlite Power for acquisition of GPTL upon commissioning. The acquisition, subject to unitholder's approval and other customary closing adjustments, will be funded through internal accruals, proceeds from the preference issue done in May 2019 and new debt. The acquisition will be accretive to IndiGrid and will leave sufficient debt headroom, with net debt / AUM of approximately 53% post acquisition.

With a visibility of ~INR 180 Bn (~US$2.5 Bn) assets under management over the next 15-18 months, IndiGrid remains suitably placed to diversify into other similar infrastructure asset class and further increase the returns for its unitholders without diluting the risk profile. IndiGrid intends to acquire solar projects with robust power purchase agreements, operational track record and financially strong counterparties / off-takers. In addition to long contract life and low risk cash flows, solar projects complement transmission portfolio with synergies on operations and regulatory establishments. With the operational and financial synergies, such diversification will result in additional accretion for unitholders while maintaining AAA rated cash flows to unit-holders.

Commenting on the acquisition and the expansion strategy, Harsh Shah, Chief Executive Officer of IndiGrid, said "GPTL acquisition is in line with our strategy for acquiring transmission projects to grow returns for unitholders. Over last 12 months, we have raised ~INR 25.1 Bn (~US$ 353 Mn) of capital via preference issue and acquired ~ INR 75 Bn (~ US$ 1 Bn) worth of transmission assets. It underlines our ability to grow our portfolio consistently and execute our strategy of enhancing investor returns while maintaining a strong balance sheet.

We believe that solar energy sector in India has matured and our proposed diversification in solar energy projects would result in improved returns to unitholders. There is an attractive opportunity to aggregate good quality solar projects with operational track record for well capitalized platforms like IndiGrid. Solar project portfolio will remain a minor percentage of our sizable AUM and focused on strong counter parties like SECI / NTPC."

Earlier in the year, IndiGrid raised INR Rs 25.1 Bn (US$ 353 Mn) of capital by way of preferential issue which was subscribed by KKR and GIC amongst other marquee investors. It acquired NRSS XXIX and OGPTL projects from Sterlite Power for ~ INR 51 Bn (US$ 718 Mn). In addition to that, it entered into an exclusive framework agreement with Sterlite Power to acquire three more projects worth ~ INR 65 Bn (~US$865 Mn) as and when they are commissioned. KKR also acquired majority interest in the Investment Manager of IndiGrid. In Q4 FY 2019-20, IndiGrid successfully acquired another operational ROFO asset ENICL from Sterlite Power.

Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com

Other Headlines:

Dhanuka Agritech Ltd board to consider Q4, FY20 results on June 20, 2020

Blue Star Ltd approves allotment of 3,500 NCDs

Future Retail Ltd allots 2000 NCDs

TCS Recognized as a Leader in Gartner Magic Quadrant for Public Cloud Infrastructure Professional and Managed Services, Worldwide

Manappuram Finance Ltd allots 5000 NCDs on June 1, 2020

Trigyn Technologies Limited reports financial results for Q4, FY2020

CRISIL Rating on the Rs.150 Crore Non Convertible Debentures of Finolex Cables Limited

L&T Construction Converts Healthcare Units into COVID-19 Care Facilities

PG Electroplast Limited announces resignation of CFO

Maruti Suzuki sales posts sales of 18,539 units in May 2020

Infomerics upgrades long-term rating of Indiabulls Real Estate Ltd

Escorts Agri Machinery sells 6,594 Volumes in May 2020

IEX launches real-time electricity market

Marksans Pharma Ltd updates on Metformin Extended Release Tablets 500 mg & 750 mg

Biocon's* Partner Mylan Receives Favourable Ruling from U.S. PTAB on Sanofi's Four Device Patents for Lantus® SoloSTAR®

Seamec Ltd completes contract vessel 'SEAMEC PRINCESS' with L&T Hydrocarbon Engineering Ltd

Indoco Remedies Ltd board to consider Q4, FY20 results on June 24, 2020

Dishman Carbogen Amcis Ltd board to announce Q4, FY20 results on June 3, 2020

Raymond Ltd approves issue of NCDs aggregating Rs. 80 crore

Exide Industries Ltd board to consider Q4, FY20 results on June 5, 2020

Cosmo Films Ltd board to approve Q4, FY20 results on June 4, 2020

Hindustan Oil Exploration Company Ltd Q4 consolidated PAT falls to Rs. 11.58 crore

Multi Commodity Exchange of India Ltd Board approves dividend of Rs. 30

The Great Eastern Shipping Company Ltd reports loss of Rs. 50.68 crore in Q4 FY20

CreditAccess Grameen Ltd Q4 FY20 consolidated PAT slips to Rs. 28.84 crore

Amber Enterprises India Ltd Q4 consolidated PAT at Rs. 62.84 crore

Mercury Laboratories Ltd Q4 loss at Rs. 0.35 crore

Moody's downgrades India Infoline Finance Limited to B1 from Ba3, ratings remain under review for downgrade

Mercury Laboratories Ltd Board recommends Dividend of Rs. 2 for FY20

MCX Q4 consolidated net profit up at Rs. 65.50 crore

Lemon Tree Hotels Ltd board approves fund raising proposal

Amara Raja Batteries Ltd reports Q4 FY20 consolidated net profit of Rs. 137.30 crore

Seshasayee Paper and Boards Ltd board recommends dividend of Rs. 4

IDBI Bank Back in Black, registers Net Profit of Rs. 135 crore in Q4 FY 2020 after 13 Quarters

Polycab India Ltd reports Rs. 213.93 crore consolidated PAT in Q4 FY20

KEI Industries Ltd posts consolidated PAT of Rs. 62.03 crore in Q4 FY20

Seshasayee Paper and Boards Ltd Q4 FY20 consolidated PAT at Rs. 48.01 crore

The Great Eastern Shipping Company Ltd board declares interim dividend of Rs. 2.70

Kotak Mahindra Bank allots 6.5 crore shares at Rs. 1145 per share

Affle India Ltd Q4 consolidated PAT up YoY at Rs. 15.28 crore

Advanced Enzyme Technologies Ltd board recommends dividend of Rs. 0.60

RCF's Q4 2019-20 profit after tax rises over 190 % over Q4 2018-19

Eris Lifesciences Ltd board to consider Q4, FY20 results on June 2, 2020

Advanced Enzyme Technologies Ltd Q4 consolidated PAT at Rs. 31.33 crore

Kaveri Seed Company Ltd Q4 FY20 consolidated net profit at Rs. 7.57 crore

Kanpur Plastipack Ltd Board recommends final dividend of Rs. 0.60 for FY20

Techno Electric & Engineering Company Ltd to sell its stake in JKTPL

NLC India Limited raises Rs. 500 crore through Commercial Paper

Kanpur Plastipack Ltd Q4 PAT at Rs. 0.47 crore

CRISIL updates on rating of Jubilant Life Sciences Limited

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019