India’s first and largest infrastructure investment trust (InvIT), IndiGrid Infrastructure Trust, on Tuesday (December 2), announced the execution of definitive agreements to acquire Gadag Transmission Ltd for an enterprise value of about ₹372 crore, excluding any net working capital and cash adjustments.
The transaction structure also provides for an earn-out to be paid to the sellers linked to change-in-law, availability, and bilateral billing components, payable only if and when such payments are received.
Gadag Transmission Ltd is an inter-state transmission system project operating under the build-own-operate-maintain model. It forms the first phase of the transmission infrastructure planned to evacuate nearly 2,500 MW of solar power from the Gadag Solar Energy Zone in Karnataka.
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The project has been operational since September 2024. The asset includes around 187 circuit kilometres of transmission lines and a 1,000 MVA substation, with additional scope for augmentation as part of the broader system expansion plan.
Gadag Transmission Ltd is jointly owned by ReNew Transmission Ventures Private Ltd (RTVPL) (51%) and KNI India AS (49%), a joint venture between Norfund and KLP. Upon completion of the transaction, IndiGrid will acquire full shareholding and management control in accordance with the provisions of the definitive and concession agreements, including lock-in obligations therein.
Harsh Shah, Managing Director of IndiGrid, said, “India’s energy transition demands a robust and future-ready transmission infrastructure. Gadag Transmission plays a pivotal role in evacuating renewable energy from one of the country’s largest solar zones and perfectly complements our strategy to own and operate critical grid assets.”
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This acquisition will be funded through a combination of equity, internal accruals, and debt. The net debt/AUM will be 60.5% post this acquisition, leaving adequate headroom for future growth.
Shares of IndiGrid Infrastructure Trust ended at ₹168.50, up by ₹0.050, or 0.030%, on the BSE today, December 2.
(Edited by : Shoma Bhattacharjee)