IndiGrid has secured Rs 6.7 billion through a SEBI-compliant institutional placement (IP) process. Initiated on December 5, 2023, the IP process witnessed significant interest from both established and new institutional investors in India and around the world. In September 2023, IndiGrid successfully secured over Rs 4 billion through a preferential issue. With the recently finalised IP, the company has secured approximately Rs 10.7 billion in equity funds during the fiscal year (FY) 2023-24.
With an enterprise valuation of Rs 40 billion, IndiGrid acquired Virescent Renewable Energy Trust (VRET) in the initial half of the current fiscal year. VRET stood as the first sole Indian renewable energy Infrastructure Investment Trust, encompassing a portfolio of 16 operational solar projects and an aggregate capacity of 538 MWp. The purchase was financed using a combination of internal earnings, debt, and capital mobilisation, resulting in IndiGrid’s net debt to AUM ratio reaching 63.5 per cent at the conclusion of second quarter of FY2023-24. The funds generated from the recently concluded IP and the preferential allotment will be utilised to reduce existing debt. Through this capital infusion, IndiGrid has established a substantial debt capacity of approximately Rs 60 billion to Rs 70 billion within the 70 per cent leverage cap.
The Board of Directors of IndiGrid Investment Managers Limited, serving as the investment manager of IndiGrid, authorised the issuance and allocation of approximately 52.7 million new units to 11 qualified investors through the IP on December 8, 2023. Over 90 per cent of the additional units were allocated to insurance companies, mutual funds, pension funds, and domestic institutions. Axis Capital Limited, Ambit Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Limited functioned as the book running lead managers for this placement. While Cyril Amarchand Mangaldas served as issuer council and S&R Associates as banker’s counsel.