IndiGrid has announced the launch of its preferential issue process following successful conclusion of the Offer-for-Sale (OFS) run by its sponsor KKR.
Last week, KKR successfully concluded an OFS process to bring their unitholding down from 21.17 per cent to 3.85 per cent. The OFS attracted significant attention from IndiGrid’s current as well as new long-term investors with the OFS being over-subscribed around 2x times, including both retail and non-retail categories. Marquee investors like L&T, HSBC Global Asset Management, SBI Life Insurance, Aditya Birla MF, Cholamandalam General Insurance, PNB Metlife, Future Generali, and others participated and picked up a stake in IndiGrid.
KKR had first invested in IndiGrid in 2019 and increased their stake further in 2021 via its Asia Infrastructure Fund-1. With over five years of holding period, the fund has now monetized a portion of its unitholding. However, KKR will continue to be the sponsor of IndiGrid and continue to own 100% of IndiGrid Investment Managers Limited – which remains IndiGrid’s Investment Manager.
Considering the significant interest for investment in the trust and growth potential, IndiGrid today launched its preferential issue process to raise Rs.695 crore through primary issuance of units at a price of Rs.136.43 per unit, in-line with the SEBI regulations for preferential issue by InvITs.
IndiGrid has received investment commitments from Alberta Investment Management Corporation (AIMCo), one of Canada’s largest and most diversified institutional investment managers, and HDFC Life, one of India’s leading Insurance providers, for an investment of Rs.567 crore and Rs.100 crore respectively, with balance committed by other investors.
IndiGrid’s Distribution per Unit (DPU) guidance for the full year FY2024-25 continues to be at Rs.15, with the Q2 (July to September) distribution expected to be made in November post the quarterly board meeting.
Investor confidence
Commenting on the announcement, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, quoted: “It is a heartening moment for us to witness such significant confidence from all classes of investors, and we are pleased to welcome multiple marquee investors on the back of the OFS. We are also delighted to welcome AIMCo and HDFC Life, through a preferential issue, in our roster of reputed investors.
IndiGrid has been the largest and one of the most successful publicly listed InvITs with a strong track record of predictable DPU and growth. With significant sector tailwinds, strong investor confidence and global investment management expertise of KKR, we believe that IndiGrid will be able to deliver sustainable shareholder returns for its unit holders.”
Featured photograph shows a power transmission asset in IndiGrid’s portfolio.
