IndiGrid, the country’s first Infrastructure Investment Trust (InvIT), plans to raise Rs 3,000 crore to acquire projects as it looks to expand its portfolio.
IndiGrid had recently 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 to fund the acquisition of Patran Transmission Company.
“IndiGrid unitholders have approved up to Rs 3,000 crore of equity raising through the additional issue of units. Considering 49 per cent cap on leverage, this would allow us to acquire up to Rs 6,000 crore incremental projects. Any acquisition will require approval from unit holders,” IndiGrid CEO Harsh Shah told agencies.
The company, which owned 16 independent revenue-generating elements, including 13 transmission lines of 3,361 kms and three substations of 7,000 MVA capacity across nine states in India, recently acquired PTCL’s 1,000 MVA, 400/220 KV substation with 14 bays and LILO of both circuits of Patiala-Kaithal 400 KV double circuit triple snowbird line.
“We continue to look at value accretive opportunities for such acquisitions in future. We have set a target of Rs 30,000 crore of assets under management (AUM) by 2022, which we wish to expand through such acquisitions,” he said.
Shah further said the IndiGrid is looking at taking over two commissioned assets of its sponsor Sterlite Power and Ventures, including East-North Interconnection Company and NRSS 29 Transmission which it hopes to complete by next fiscal.
Apart from these, projects including Odisha Generation Phase Transmission, Gurgaon Palwal Transmission, and Khargone Transmission, which are expected to be commissioned next year will also be acquired by IndiGrid, he said.
“There are two other projects including NER – II and Goa Tamnar Transmission which will get commissioned in November 2020 and November 2021, respectively, which will get in our portfolio. In the meantime, we are also evaluating third-party acquisitions. If these assets have had stable cash flow and are value accretive to unitholders, we will buy them,” Shah said.
IndiGrid reported a revenue of Rs 165.3 crore for the quarter ended September 30, 2018, and Rs 3 distribution per unit (DPU).
“IndiGrid remains on track to achieve its stated DPU guidance of Rs 12 for FY19,” he said.