IndiGrid announces the acquisition of its 9th transmission asset

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-By Industrial India Content Team

India Grid Trust (IndiGrid) announced the acquisition of its 9th transmission asset – East North Interconnection Company Limited (ENICL) from Sterlite Power that is valued at Rs 1,020 crore in Mumbai on 24th March’20. This acquisition increases IndiGrid’s assets under management (AUM) by 10 per cent which roughly is Rs 12,184 crore. The 9th power transmission project increases IndiGrid’s asset portfolio, with a total network of 20 power transmission lines spanning through more than 5,800 circuit kilometres across 13 Indian states.

ENICL is a part of the Inter-State Transmission System (ISTS) network developed by Sterlite Power. It consists of two 400 KV transmission lines with a total 900 circuit kilometres across the north-eastern and eastern region of India. IndiGrid had signed an extension of Right of First Offer Agreement with Sterlite Power for ENICL in May 2019.

The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019. IndiGrid has availed funding of Rs 900 crore from Axis Bank to refinance the existing debt in ENICL. With this acquisition, IndiGrid’s net debt AUM will be at 49 per cent.

Harsh Shah, Chief Executive Officer of IndiGrid, said “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 growing it with accretive acquisitions”.

In addition, “IndiGrid has another pipeline of transmission project under the framework agreement with Sterlite Power providing visibility of approximately 180 billion (INR 180 Bn) of AUM over the next two years”.

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