IndiGrid executes SPA for acquiring Jhajjar KT Transco
May 30, 2020
Mumbai (Maharashtra) [India], May 30 : India Grid Trust (IndiGrid) has announced the execution of a share purchase agreement for the acquisition of 100 per cent stake in Jhajjar KT Transco from Kalpataru Power Transmission Ltd (KPTL) and Techno Electric & Engineering Company Ltd (TEECL).
The indicative value of the transaction is Rs 310 crore and is subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. The transaction is also subject to requisite approvals and compliances, IndiGrid said in a statement.
JKTPL is an operational intra-state asset awarded on a design build finance operate and transfer basis with a contractual period of 25 years and a provision of a further 10-year extension. It consists of three 400 kilovolt transmission lines spread across 103 km in Haryana with two substations with a transformation capacity of 830 mega volt amp.
The project has been operational for eight years with a robust collection track record and receivable cycle of less than a month. It is a strategic asset for Haryana state distribution companies and the key evacuation transmission system from the 1,320 megawatt thermal power plant in Jhajjar.
The transaction with KPTL and TEECL also reinforces the opportunity to grow the IndiGrid portfolio through value accretive acquisitions of quality transmission assets. It is also the second transaction with TEECL after the acquisition of Patran Transmission Company Ltd (PTCL) in August 2018.
The acquisition will be funded through a combination of debt and internal accruals. IndiGrid's portfolio will increase to 10 power transmission projects with a total network of 23 power transmission lines that span more than 6,000 circuit kilometers across 14 states post this acquisition.
"This acquisition is in line with our strategy to acquire accretive operational assets with long term and stable cash flows, thereby growing returns for unitholders," said Chief Executive Officer Harsh Shah.
Apart from third party opportunities available in the Indian transmission sector, IndiGrid has another Rs 6,500 crore pipeline of transmission projects under the framework agreement with Sterlite Power providing visibility of Rs 18,000 crore of assets under management over next two years.
IndiGrid is the first infrastructure investment trust in the Indian power sector. It owns nine operating projects consisting of 20 transmission lines with 5,800 circuit km length and four substations with 7,735 mega volt amp transformation capacity.
It has assets under management worth Rs 12,100 crore. IndiGrid is managed by Sterlite Investment Managers Ltd which is majority owned by KKR.
