India Grid Trust (IndiGrid) announced that it has successfully raised Rs.670 crore through an Institutional Placement (IP) process as laid out by SEBI.
The IP process, launched on December 5, 2023, saw strong demand from both existing and new Indian and global institutional investors, a release from IndiGrid said.
In September 2023, IndiGrid had raised over Rs.400 crore through a preferential issue. With the recently concluded Institutional Placement, the company has successfully raised equity funds of around Rs.1,070 crore in FY24.
Acquisition of Virescent
During the first half of this fiscal, IndiGrid acquired Virescent Renewable Energy Trust (VRET) at an enterprise valuation of INR 40 billion. VRET was India’s first and only renewable energy InvIT with a portfolio of 16 operational solar projects and a cumulative capacity of 538 MWp. The acquisition was funded through a combination of internal accruals, debt and capital raise and IndiGrid’s Net Debt to AUM reached 63.5 per cent as on end of Q2 of FY24. Proceeds from the recently concluded Institutional Placement and those from the preferential allotment would be used for paring down the debt.
Strong asset portfolio
Commenting on the placement, Harsh Shah, Chief Executive Officer of IndiGrid, said, “We are thankful to the investor community for their continued trust in the growth story of IndiGrid. We have consistently managed our unitholders’ funds very judiciously and have built a robust balance sheet and strong asset portfolio of transmission and solar assets across 20 states and 1 union territory of the country. This fund raise has helped us expand our unit holder base with more than 90 per cent demand from long-term investors across insurance companies, pension funds, mutual funds and domestic institutions to IndiGrid’s investor base.”
Also read: IndiGrid Wins Its First Battery Energy Storage System Project
IndiGrid portfolio
IndiGrid is the first Infrastructure Investment Trust (InvIT) in the Indian power sector. It owns 35 power projects, consisting of 46 transmission lines with more than around 8,468 ckm length, 13 substations with 17,550 MVA transformation capacity and 555 MWAC (676 MWp) of solar generation capacity.
