India Grid Trust (IndiGrid) on Thursday announced completing the acquisition of 100 per cent “shareholding and economic interest” in Khargone Transmission Ltd from Sterlite Power Transmission Ltd (SPTL). IndiGrid is India’s first listed power sector infrastructure investment trust (InvIT) and STL is one of the sponsors of IndiGrid.
“IndiGrid announces the completion of acquisition of 100 per cent shareholding and economic interest in Khargone Transmission Ltd (KTL) from SPTL,” it said in a statement.
“Acquired at an enterprise value of Rs 15 billion, the addition of KTL to the portfolio will take IndiGrid’s assets under management to Rs 227 billion and its overall asset base to 8,416 ckms of transmission lines and 17,550 MVA of transformation capacity,” the company said.
The acquisition was funded through a combination of equity, internal accruals, and debt.
On January 21, IndiGrid and SPTL signed a binding share purchase agreement for the acquisition. The IndiGrid received its unitholders’ approval on February 23.
KTL is an Inter-state Transmission System TBCB (Tariff Based Competitive Bidding) project and has been operating commercially since December 2021.
It is a Build-Own-Operate-Maintain (BOOM) based project and has a remaining transmission service agreement life of 32 years with a levelised tariff of Rs 159.1 crore.
The asset spans across Madhya Pradesh and Maharashtra and terminates in one end at the Dhule substation of Bhopal Dhule Transmission Company Ltd (BDTCL).
Harsh Shah, Chief Executive Officer of IndiGrid, said that due to KTL’s geographical proximity to its existing BDTCL project, the acquisition provides an operational leverage and will help drive operational efficiency.
