India Grid Trust (IndiGrid), India’s infrastructure investment trust, announced the closing of a preference unit issuance worth Rs 2,514 crore (USD 363 million). As part of the transaction, KKR and GIC have invested Rs 1,084 crore (USD 157 million) and Rs 980 crore (USD142 million), respectively, to collectively own 42 per cent of IndiGrid’s outstanding units. KKR has also applied to become a sponsor of IndiGrid and plans to acquire an additional 15 per cent of IndiGrid’s total units from Sterlite Power. KKR and GIC will collectively own approximately 57 per cent of IndiGrid’s outstanding units.
In a separate transaction, KKR will additionally acquire a majority share holding in Sterlite Investment Managers. With the capital infusion provided by the new unit issuance, IndiGrid will purchase five electricity transmission assets worth Rs 11,500 crore (US$1.66 billion) from Sterlite Power. A share purchase agreement for the two operational transmission assets — NRSS XXIX and OGPTL — has been signed, while three additional assets will be purchased once they become operational.
