IndiGrid invests Rs 232 crore in Patran Transmission Company

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IndiGrid, the country's first infrastructure investment trust (InvIT), Tuesday said it has completed the Rs 232-crore investment in Patran Transmission Company (PTCL).

The company had in February signed a definitive agreement with Techno Electric to invest Rs 232 crore in PTCL.

"This is IndiGrid's first investment in a third-party asset. We will continue to look at value accretive opportunities for such acquisition in future," its chief executive officer and whole-time director Harsh Shah said.

Shah said the company has set a target of Rs 30,000 crore of assets under management (AUM) in the next five years, which it wish to expand through such acquisitions.

The acquisition was done entirely through internal accruals and available debt headroom, according to him.

IndiGrid had raised Rs 250 crore in debentures through the e-bidding platform of BSE, making it the first ever bond issuance by an InvIT, which was used for funding the acquisition.

Post the placement, IndiGrid's net debt to AUM stands at 47 percent, Shah informed.

"Since listing last year, IndiGrid has expeditiously grown its portfolio of operational power transmission assets with low counterparty risks and long-term cash flows. This is the fourth value accretive acquisition in the last 12 months and is in line with target of reaching 12 percent portfolio equity IRR," he said.

IndiGrid has set a target of achieving distribution per unit (DPU) guidance of Rs 12 for FY19, he added.

PTCL project consists of a 1,000 MVA, 400/220 KV substation with 14 bays and LILO of both circuits of Patiala-Kaithal 400 kV double circuit triple snow bird line.

This inter-state project was awarded on a perpetual basis on build, own, operate and maintain model through competitive bidding.

IndiGrid has so far completed the acquisition of three assets from its sponsor, Sterlite Power Grid Ventures, namely RAPP Transmission Company at Purulia and Kharagpur Transmission Company and Maheshwaram Transmission.

It owns 16 independent revenue-generating elements, including 13 transmission lines of 3,361 ckms and three substations of 7,000 MVA capacity across nine states in India.