IndiGrid [BSE: 540565 | NSE: INDIGRID], India’s first and largest publicly listed power sector infrastructure investment trust (InvIT), announced the execution of definitive agreements to acquire one solar and one transmission asset, aggregating to an Enterprise Value (EV) of approximately INR 2,108 crore, excluding any net working capital and cash adjustments. Inclusive of the adjustments the EV shall not exceed ~INR 2,175 crore.
Commenting on the acquisition, Harsh Shah, Managing Director of IndiGrid, said,” India’s power sector is at a pivotal juncture, with the need for robust transmission infrastructure and accelerated renewable integration becoming more critical than ever. These acquisitions align with our long-term strategy to participate meaningfully in this transformation by owning and operating essential infrastructure that supports grid stability and energy access. RSAPL and KNTL are both high-quality operational assets that deepen our presence in key geographies and enhance our portfolio’s diversification and are DPU accretive. As the sector continues to evolve, IndiGrid remains focused on building a future-ready platform that supports the nation’s energy ambitions while delivering sustained value to our unitholders.”
The solar asset, Renew Solar Aayan Private Limited (RSAPL), is a 300 MW (AC) operational project located in Barmer, Rajasthan – a region known for high solar irradiation. The project has been operational since March 2024 and benefits from a long-term 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of INR 2.37 per unit. A 100% subsidiary of ReNew Solar Power Private Limited, RSAPL’s proximity to RSUPL – an asset acquired by IndiGrid in 2024 – offers strong operational synergies and strengthens the platform’s presence in the renewable segment.
The transmission asset, Koppal Narendra Transmission Limited (KNTL), is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project located in Karnataka. Operational since October 2023, KNTL comprises approximately 276 circuit kilometers of transmission lines and ~2,500 MVA of transformation capacity. The asset is jointly owned by ReNew Solar Power Private Limited (51%) and KNI India (49%), a joint venture between Norfund and KLP. With its location in a region witnessing rapid grid expansion, KNTL offers meaningful long-term augmentation potential for IndiGrid.
Subject to regulatory and contractual approvals, IndiGrid will acquire 100% shareholding and management control of both assets, in line with the provisions of the definitive and concession agreements and the Power Purchase Agreement (PPA), including lock-in obligations therein.
This acquisition will be funded through a combination of equity, internal accruals, and debt. The net debt/AUM will be ~62% post this acquisition, leaving adequate headroom for future growth.
