IndiGrid acqires GPTL Transmission project from Sterlite at Rs 1,080 cr

• IndiGrid's AUM increases by ~9% to ~ Rs 13,300 crore

• GPTL consists of 3 GIS of 3,000 MVA capacity and ~270 ckms of 400 KV transmission lines

Mumbai: India Grid Trust (IndiGrid), India's leading infrastructure investment trust, has completed the acquisition of another transmission asset — Gurgaon Palwal Transmission Limited (GPTL) from Sterlite Power on Monday. IndiGrid said that the acquisition has been made at an enterprise value of around Rs 1,080 crore ($150 million). With this acquisition, IndiGrid's AUM has increased by ~9 percent to ~Rs 13,300 crore ($1.80 billion). IndiGrid's asset portfolio will now consist of 10 power transmission projects, with a total network of 25 power transmission lines and 7 substations extending over ~6,080 circuit kilometres and 10,735 MVA in 15 Indian states.

GPTL has 3 gas-insulated substations with capacity of 3,000 MVA

GPTL is part of Inter State Transmission Scheme (ISTS) network and consists of three gas-insulated substations (GIS) with a total transformation capacity of 3,000 MVA and ~270 circuit kilometres of 400 KV transmission lines spread across Uttar Pradesh, Haryana and Rajasthan. This project is built with a substantial focus on environmental, social and governance (ESG) aspects. It is a strategic asset for ensuring reliable power supply in the region which may reduce carbon emissions by reducing dependence on DG sets. The land requirement for this project is also substantially reduced with innovatively designed vertical GIS substation and monopole towers with micro-piling.

'Acquisition of GPTL was envisaged in 2019'

"The acquisition of GPTL was envisaged as part of the framework agreement signed with Sterlite Power in April 2019 for acquisition of three assets upon commissioning. This acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. With this investment, IndiGrid's net debt/AUM will be at ~53 percent, significantly below the 70 percent leverage threshold as per SEBI InvIT Regulations," the statement said.

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Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said "This acquisition is in line with our strategy to acquire accretive assets with low operating risk and long-term certainty of cash flows. We continue our efforts to increase unitholders' returns by creating a solid growth pipeline for the future while providing predictable distribution. IndiGrid has another Rs 5,500 crore ($750 million) pipeline of transmission projects under the framework agreement with Sterlite Power providing visibility of Rs 18,000 crore ($2.50 billion) of AUM over the next two years. This acquisition is a testament to our consistent track record of aggregating good quality projects with the vision of enhancing investor returns while maintaining a strong balance sheet."

Sterlite Power to transfer assets worth another Rs 5,500 cr to IndiGrid

Commenting on the transaction, Anuraag Srivastava, Group CFO, Sterlite Power, said, "We are proud to successfully close yet another asset sale in these unprecedented times. GPTL sale marks our ninth asset transfer to India Grid Trust. With this, we have transferred about ~Rs 12,300 crore ($1.70 billion) worth transmission assets to IndiGrid till date. The sale of this strategic project amidst a challenging market situation is a clear validation of the pioneering asset monetisation model and our ability to commission high quality projects with long term stable cash flows. We look forward to commissioning more assets and transfer about another ~Rs 5,500 crore ($750 million) worth of assets to IndiGrid over a period of time."

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