IndiaGrid, an infrastructure investment trust, announced on Friday the completion of the acquisition of a 300 MW solar project valued at Rs 1,550 crore. This addition brings IndiaGrid’s portfolio to a total of 19 solar projects across eight states in India, with a combined generation capacity of 1.1 GWp.
The statement from IndiaGrid highlighted that the trust’s total Assets Under Management (AUM) have now reached Rs 28,200 crore. The acquisition, completed according to a share purchase agreement signed in January 2024, involved a 300 MW AC solar asset with an enterprise valuation of approximately Rs 15,500 million, excluding net working capital and cash adjustments.
Funding for the acquisition was sourced through a mix of equity, internal accruals, and debt. It is projected to contribute Rs 80 crore of net distributable cash flow annually to IndiaGrid. Following the acquisition, the net debt to AUM ratio for IndiaGrid will be 63 percent.
The acquired asset, ReNew Solar Urja Private Limited (RSUPL), has been operational since December 2021 and is situated in Jaisalmer, Rajasthan, known for its high irradiation levels. RSUPL holds a 25-year Purchase Power Agreement (PPA) with Solar Energy Corporation of India (SECI) at a tariff of Rs 2.71 per unit. RSUPL marks a significant addition to IndiaGrid’s portfolio as the largest capacity project located at a single site for the company.
Harsh Shah, Chief Executive Officer and Whole Time Director of IndiaGrid, expressed enthusiasm about the transaction, emphasizing its alignment with the trust’s goal to provide sustainable and superior risk-adjusted yield for investors.
IndiaGrid, as the first Infrastructure Investment Trust (InvIT) in India’s power sector, boasts ownership of 36 power projects, including 46 transmission lines spanning over 8,468 ckms, 13 substations with approximately 17,550 MVA transformation capacity, and around 855 MWAC of solar generation capacity.
