IndiGrid to acquire 300 MW solar project, transmission asset for ₹2,108 cr

IndiGrid, a power sector infrastructure investment trust (InvIT), announced the execution of definitive agreements to acquire one solar and one transmission asset, aggregating to an Enterprise Value (EV) of about ₹2,108 crore, excluding any net working capital and cash adjustments. 

Inclusive of the adjustments the EV will not exceed ₹2,175 crore, IndiGrid said in a statement.

The solar asset, Renew Solar Aayan Private Ltd (RSAPL), is a 300 MW (AC) operational project located in Barmer, Rajasthan.

The transmission asset, Koppal Narendra Transmission Ltd (KNTL), is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project located in Karnataka.

Subject to regulatory and contractual approvals, IndiGrid will acquire 100% shareholding and management control of both assets, in line with the provisions of the definitive and concession agreements and the Power Purchase Agreement (PPA), including lock-in obligations therein.

This acquisition will be funded through a combination of equity, internal accruals, and debt. The net debt/AUM will be 62% post this acquisition, leaving adequate headroom for future growth.