Edelweiss Infrastructure fund- backed Sekura Energy Tuesday signed an agreement to acquire stake in two operating and two under-construction power transmission assets from Essel Infraprojects, for an undisclosed sum, the company said.
While the operational projects are Darbhanga-Motihari Transmission and NRSS XXXI (B) Transmission, the under-construction projects are Warora-Kurnool Transmission and NRSS XXXVI Transmission which will be commissioned by FY20.
The stake in the two under construction assets would be acquired post commissioning and these four projects have an enterprise valuation of Rs 60 billion.
Sekura is promoted by Edelweiss Infrastructure Yield Plus Fund and focuses solely on the power sector.
“This transaction fits well with our strategy of investing in infrastructure assets which can deliver predictable long-term returns to investors. Sekura Energy invests in long term yielding opportunities in the power sector,” its head Subahoo Chordia said in a statement.
“With this acquisition, Sekura will be one of the leading asset owners and investors in the power sector”, Avinash Rao, Sekura Energy chief executive said.
Essel Infraprojects chief executive Rohit Modi said asset monetization is an important aspect of their strategy to create growth capital. Total enterprise value of these four projects is Rs 60 billion and these transactions are the first of the monetization plans of the company.
The Essel group has plans to expand its footprint in the emerging infrastructure sectors like water, railways, municipal solid waste etc, he added.
Edelweiss Infrastructure Yield Plus is a Sebi- registered Category I AIF and invests in sectors such as power transmission, renewables, roads and highways and other infrastructure which meet its risk-return matrix. It is the largest yield focused infrastructure AIF with capital commitments from both domestic and global investors.
Edelweiss Alternate Asset Advisors is the investment manager to the fund. The Edelweiss group offers asset management and advisory capabilities and currently has $ 26 billion of assets under management.
Essel Infraprojects has four major strategic business units–transport, green energy & transmission, smart utilities, environment and 10 verticals, and has an order book of $ 5.06 billion.
The Essel group began with the infrastructure space in 2007 with the surface transport segment and today has presence in transport (roads and railways), power transmission & distribution, environment (municipal solid waste), waste water treatment and water desalination, solar & hydel power, and integrated utilities like power, water, and city gas distribution.
Source: Business-Standard