The unitholders of India Grid Trust (IndiGrid) have approved the induction of Esoteric II Pte. Ltd., an affiliate of KKR & Co. Inc (“Esoteric II”) as a sponsor, (as defined under the InvIT Regulations) with special majority.
The special resolution to induct Esoteric II as a sponsor was passed with a special majority in the 3rd Annual General Meeting of IndiGrid held on September 28, 2020.
All regulatory approvals including the Board’s assent are in place for Esoteric II ‘s induction as a co-sponsor. This move marks an extension of IndiGrid’s strategic relationship with KKR and underscores IndiGrid as a compelling investment opportunity for long-term investors.
Background: Esoteric earlier this month approached Sterlite Investment Managers to convene a meeting of unitholders to seek approval of Esoteric’s induction as sponsor of IndiGrid (Read more)
KKR is a leading global investment firm with over 43 years of experience and $222 billion of assets under management as of June 30, 2020. As part of KKR’s first investment through its Asia Pacific Infrastructure strategy, it had invested Rs.1,084 crore in May 2019 and currently owns around 23 per cent stake in IndiGrid. Separately, KKR also owns 60 per cent stake in Sterlite Investment Managers Ltd (SIML), the investment manager of IndiGrid.
IndiGrid, over the last 13 quarters, has distributed a total of Rs.36.56 per unit to its investors since listing. The platform has maintained a AAA rating by efficiently managing its assets and making nine accretive acquisitions since its listing, in a competitive landscape. Its AUM has increased more than threefold from Rs.38 billion in June 2017 to Rs.136 billion in September 2020.
Sanjay Nayar, CEO of KKR India said: “Being named as an inducted sponsor of IndiGrid further reaffirms our steadfast commitment to support the Trust’s exciting journey and our priority in addressing India’s rapidly growing infrastructure needs. With the combination of our strong sector expertise and India experience, we aim to continue assisting IndiGrid’s management team in expanding its platform and providing accessible electricity to Indian communities.”
Harsh Shah, Chief Executive Officer of IndiGrid added, “We welcome KKR’s induction as a Sponsor and look forward to benefiting from KKR’s deep expertise and focus on value creation for IndiGrid unit holders. We believe that KKR’s induction as a sponsor will expand IndiGrid’s access to long-term capital and allow the Trust to leverage KKR’s global experience of investment management, along with enhancing the corporate governance standards in line with global standards.”
In 2020, IndiGrid has acquired assets worth Rs.25 billion ($340 million). In addition to that, it had entered into an exclusive framework agreement with Sterlite Power to acquire three projects worth Rs.65 billion ($880 million) as and when they are commissioned, of which GPTL has been acquired by IndiGrid. In FY20, IndiGrid had raised Rs.25.1 billion ($340 million) of capital by way of preferential issue which was subscribed by KKR and GIC amongst other marquee investors.
