IndiGrid completes acquisition of three Sterlite Power assets

IndiGrid, an infrastructure investment Trust (InvIT), has completed the acquisition of three assets from its sponsor Sterlite Power Grid Venture Ltd.

The Trust has also acquired a 46 per cent stake in the transmission asset of Techno Eletric & Engineering Company. The asset, Patran Transmision Company Limited, has a sub-station in Patran, Punjab, and transmission lines that connect Kaithal-Patiala.

InvITs are investment vehicles that own operating infrastructure assets in India.

While the three assets from Sterlite Power will come with a price tag of Rs 1,410 crore, IndiGrid is acquiring the Patran-stake for Rs 230 crore. The Patran acquisition agreement was signed on Monday, and will be completed by March.

"These acquisitions are in line with the vision of reaching AUM of Rs 30,000 crore by 2022," Pratik Agarwal, CEO, IndiGrid told Moneycontrol. This is the company's first acquisition of a third party asset.

Post the acquisitions, IndiGrid’s total portfolio increases to 13 transmission lines and two substations operational across eight states in India. At present its assets stand at Rs 5,300 crore.

The three assets from Sterlite Power consists of five transmission lines, aggregating  1,425 km. "All these acquisitions are highly accretive and will increase portfolio IRR to 11 per cent," said Agrawal. He added that the deals will enable IndiGrid to deliver a DPU (distribution per unit) of Rs 12 for the next five years.

Incorporated in 2016, IndiGrid was the second InvIt in the country to get listed on the bourses last year.

Pratik added that IndiGrid is always on the look out for acquisition targets. "Our strategy is to buy assets at right returns," Agrawal said. He pointed that the Trust continues to look at third party assets and may also buy more assets belonging to its sponsor.