IndiGrid Acquires KTL from Sterlite Power

IndiGrid announced the completion of acquisition of 100% shareholding and economic interest in Khargone Transmission Limited from SPTL.

March 03, 2023. By News Bureau

IndiGrid announced the completion of acquisition of 100% shareholding and economic interest in Khargone Transmission Limited from SPTL.

IndiGrid and SPTL signed the binding share purchase agreement for the acquisition on January 21, 2023, dependent upon and pursuant to receipt of unitholders’ consent, regulatory and other relevant approvals as well as completion of contractual obligations. IndiGrid received its unitholders’ approval on 23^rd February 2023.

Acquired at an Enterprise Value of ~INR 15 billion, the addition of KTL to the portfolio will take IndiGrid’s Assets Under Management (AUM) to ~INR 227 billion and the company’s overall asset base to ~8,416 ckms of Transmission Lines and ~17,550 MVA of transformation capacity.

The acquisition was funded through a combination of equity, internal accruals, and debt. The net debt/AUM stands at around 61% post this acquisition, providing adequate headroom for future growth against the 70% leverage threshold as per SEBI InvIT Regulations.

Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said,” The acquisition of KTL is in line with IndiGrid’s strategy to drive growth by adding more value accretive assets to our portfolio and further solidifies our position as a leading electric utility and a sustainable yield platform. Due to KTL’s geographical proximity to our existing BDTCL project, this acquisition provides us an operational leverage and will help us drive operational efficiency.”

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Khargone Transmission Limited

Acquisition

Shareholding

Assets Under Management

Transmission