Marquee Institutional Investors Pick Significant Stake in IndiGrid
Post the completion of Offer-for-Sale by IndiGrid’s sponsor KKR, the listed power sector infrastructure investment trust has launched a preferential issue process to raise about INR 695 crore. Alberta Investment Management Corporation and HDFC Life have committed to invest about INR 567 crore and about INR 100 crore respectively.
August 29, 2024. By EI News Network
IndiGrid aims to raise about INR 695 crores through the primary issuance of units at a price of INR 136.43/Unit, in line with the SEBI regulations for preferential issue by InvITs.
According to a statement issued by the company, last week, KKR successfully concluded an OFS process to bring their unitholding down from 21.17 percent to 3.85 percent. It said, “The OFS attracted significant attention from IndiGrid’s current as well as new long-term investors with the OFS being over-subscribed about 2x times, including both retail and non-retail categories.”
Marquee investors like L&T, HSBC Global Asset Management, SBI Life Insurance, Aditya Birla MF, Cholamandalam General Insurance, PNB Metlife, Future Generali, and others participated and picked up a stake in IndiGrid.
For the uninitiated, KKR had first invested in IndiGrid in 2019 and increased its stake further in 2021 via its Asia Infrastructure Fund-1. With over five years of holding period, the fund has now monetised a portion of its unitholding. “However, KKR will continue to be the sponsor of IndiGrid and continue to own 100 percent of IndiGrid Investment Managers Limited – which remains IndiGrid’s Investment Manager,” confirmed the statement.
IndiGrid has received investment commitments from Alberta Investment Management Corporation (AIMCo), and HDFC Life, for an investment of about INR 567 crores and about INR 100 crores respectively, with the balance committed by other investors. Ambit Capital and SBI Caps are running the preferential issue process on IndiGrid’s behalf.
Commenting on the announcement, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, reiterated, “It is a heartening moment for us to witness such significant confidence from all classes of investors, and we are pleased to welcome multiple marquee investors on the back of the OFS. We are also delighted to welcome AIMCo and HDFC Life, through a preferential issue, in our roster of reputed investors.”
He further added, “IndiGrid has been the largest and one of the most successful publicly listed InvITs with a strong track record of predictable DPU and growth. With significant sector tailwinds, strong investor confidence and global investment management expertise of KKR, we believe that IndiGrid will be able to deliver sustainable shareholder returns for its unitholders.”
Commenting on the investment, Ahmed Mubashir, Managing Director, Head of EMEA and India, Infrastructure from AIMCo, said, “The growth and decarbonization of India’s electricity sector presents itself as an exciting opportunity for infrastructure investors. IndiGrid is a well-managed, transmission-focused platform providing its unit holders exposure to stable, contracted, long-term cash flows. This aligns well with our infrastructure strategy in India. AIMCo is also impressed by IndiGrid‘s track record of enabling accretive growth and is excited to be further supporting and enabling that journey with this equity injection.”
IndiGrid’s Distribution Per Unit (DPU) guidance for the FY2024-25 continues to be at INR 15, with the Quarter 2 distribution expected to be made in November post the quarterly board meeting.
please contact: contact@energetica-india.net.
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