India Grid Trust (IndiGrid), the infrastructure investment trust sponsored by Sterlite Power Grid Ventures has acquired power transmission assets worth Rs 1,410 crore from the sponsor and is in pact to buy a third party asset for another Rs 232 crore, the company said Tuesday in a statement.
IndiGrid signed a definitive agreement with Techno Electric & Engineering Company to invest Rs 232 crore in Patran Transmission Company.
“Both these acquisitions are highly accretive and will increase portfolio internal rate of return to 11% at current price. They will enable IndiGrid to deliver a DPU (distribution per unit) of at least Rs 12 for the next five years,” the company said in the statement.
The InvIT, India’s first, was set up to provide the sponsor with an opportunity to sell their stake in completed projects to the trust, which in turn can raise long-term and tax-free funds from unitholders.
IndiGrid has completed the acquisition of three assets – RAPP Transmission Company at Purulia and Kharagpur Transmission Company and Maheshwaram Transmission from Sterlite Power Grid Ventures.
“In line with its vision of reaching an assets under management of Rs 30,000 crore, IndiGrid has successfully completed the first set of the acquisitions. The fundamentals of the power transmission sector in India remain robust and IndiGrid will continue to acquire assets from both the sponsor and third parties to further increase portfolio IRR,” said Pratik Agarwal, chief executive officer, IndiGrid.
