IndiGrid fast tracks growth with INR 16.4 billion of acquisitions
Hyderabad: IndiGrid has completed the acquisition of three assets – RAPP Transmission Company Limited, Purulia and Kharagpur Transmission Company Limited and Maheshwaram Transmission Limited (together “MRP”) from its Sponsor – Sterlite Power Grid Ventures Limited. It has simultaneously signed definitive agreements with Techno Electric & Engineering Company Limited to invest in Patran Transmission Company Limited (“PTCL”).
The purchase consideration for MRP is INR 14.10 billion and for PTCL is INR 2.32 billion. Both these acquisitions are highly accretive and will increase portfolio IRR to 11% at current price. They will enable IndiGrid to deliver a DPU of at least INR 12 for the next five years.
Commenting on the developments, Mr. Pratik Agarwal, Chief Executive Officer, IndiGrid, said “In line with its vision of reaching an AUM of INR 300 billion, IndiGrid has successfully completed the first set of the acquisitions. Further, we have demonstrated our ability to pursue third party assets by signing definitive agreements 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”.