KKR-backed IndiGrid acquires transmission asset from Sterlite for $134m

Power grids. Photo: Fré Sonneveld/unsplash

Private equity firm KKR-backed India Grid Trust (IndiGrid), on Tuesday announced the acquisition of a transmission asset, East North Interconnection Company Limited (ENICL), from Sterlite Power at a value of $134 million.

With this acquisition, IndiGrid’s AUM will increase by 10% to $1.6 billion. IndiGrid’s asset portfolio will increase to nine power transmission projects, with a total network of 20 power transmission lines spanning across more than 5,800 circuit kilometres across 13 Indian states.

ENICL is a part of the Inter State Transmission System network developed by Sterlite Power. It consists of two 400 KV transmission lines with a total of 900 circuit kilometers across Assam, Bihar and West Bengal. The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed funding of Rs900 crore from Axis Bank.

“This acquisition is in line with our strategy to acquire accretive assets with long term certainty of cash flows. Our focus is to not only ensure stable distribution to unit holders by owning assets with long term contracts but also grow it with accretive acquisitions. IndiGrid has another $ 855 million (approx Rs6,500 crore) pipeline of transmission projects under the framework agreement with Sterlite Power providing visibility of $2.4 billion (Rs18,000 crore) of AUM over next two years,” said Harsh Shah, Chief Executive Officer of IndiGrid.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.