IndiGrid has signed definitive agreements to acquire two operational infrastructure assets, one solar project and one transmission project, in separate transactions. These transactions amount to a total enterprise value of approximately Rs 21.08 billion. Inclusive of net working capital and cash adjustments, the enterprise value will further amount to Rs 21.75 billion.
The solar project, ReNew Solar Aayan Private Limited, is a 300 MW AC project located in Barmer, Rajasthan, and has been operational since March 2024. It operates under a 25-year power purchase agreement (PPA) with the Solar Energy Corporation of India Limited at a fixed tariff of Rs 2.37 per unit. Its proximity to ReNew Solar Urja Private Limited, another project acquired by IndiGrid in 2024, is expected to create operational synergies. Additionally, the transmission project, Koppal Narendra Transmission Limited (KNTL), is an inter-state transmission system project located in Karnataka. Operational since October 2023, KNTL consists of approximately 276 circuit kilometres of transmission lines and around 2,500 MVA of transformation capacity. The project operates on a build-own-operate-maintain basis and is currently held jointly by ReNew Solar Power Private Limited with 51 per cent ownership and KNI India with 49 per cent, the latter being a joint venture of Norfund and KLP.
The acquisition is reportedly pending the necessary regulatory and contractual clearances, subject to which IndiGrid will acquire 100 per cent ownership and management control of both assets in accordance with the definitive and concession agreements, as well as the lock-in obligations under the PPA. These acquisitions are expected to contribute over Rs 1 billion to IndiGrid’s annual net distributable cash flow in the near term. They will be financed through a mix of equity, internal accruals, and debt. Post-acquisition, IndiGrid’s net debt-to-asset under management ratio is expected to be approximately 62 per cent.
