Power sector infrastructure investment trust, IndiGrid, has signed a share purchase agreement for acquisition of 100% stake in, one or more tranches, in Raichur Sholapur Transmission Company Private Limited (RSTCPL), for over Rs 250 crore.
IndiGrid has acquired the shares from Patel Engineering Limited, Simplex Infrastructures Limited and BS Limited, each owning 33.33% stake, respectively. The completion of acquisition would depend upon receipt of relevant approvals and completion of contractual obligations, the company said.
“As a low-risk operational transmission asset with long-term contracted cash flows and minimal counterparty risk, this acquisition fits in well with IndiGrid’s growth strategy," said Jyoti Kumar Agarwal, CEO, IndiGrid, adding that the acquisition would be distribution point unit (DPU) accretive and will provide further visibility to sustain the increased DPU of Rs 3.30 for a longer period of time. IndiGrid has assets under management of over Rs 210 billion, and owns 14 operating power projects, consisting of 40 transmission lines with more than 7,570 ckms length, 11 substations, one project under construction and 100 MW (AC) of solar generation capacity.
RSTCPL was incorporated on November 19, 2009 and operates one single circuit 765 kV transmission line between Raichur in Karnataka and Sholapur in Maharashtra, with a line length of approximately 208 ckms. The asset was fully commissioned in July 2014. During the FY 2021-22, RSTCPL had a total Revenue of Rs. 38.70 Crores.
The acquisition of aforesaid power transmission assets is in line with IndiGrid's investment strategy as provided in the Trust Deed with a focus to ensure stable distribution to unitholders by owning assets with long term contracts. The acquisition fits into IndiGrid’s strategy, complements existing footprint and synergises with existing 765 kV network in BDTCL and upcoming Kallam transmission project, the company said.
.jpg "Overcoming the Hurdles of Scaling a Startup")
