India Grid Trust signs share purchase agreement for acquisition

India Grid Trust ("IndiGrid") has signed share purchase agreement on January 21, 2023 for acquisition of 100% shareholding and economic interest, in one or more tranches, in Khargone Transmission Limited from Sterlite Power Transmission Limited (one of the Sponsor of IndiGrid). The completion of acquisition would depend upon receipt of Unitholders' consent, regulatory and other relevant approvals as well as completion of contractual obligations.

The acquisition of aforesaid power transmission asset is in line with the IndiGrid investment strategy as provided in the Trust Deed with a focus to ensure stable distribution to Unitholders by owning assets with long term contracts.

The cost of acquisition is at an enterprise value not exceeding Rs. 14,975 million, subject to all other adjustments on account of movement in unrestricted cash, realizable tariff receivables over and above the normalized net working capital, other assets net of debt and other liabilities outstanding as per the management certified (and subsequently audited) financial statements submitted, and as specified in the definitive documents to be entered into ("Closing Adjustments").

KTL was incorporated on November 28, 2015. KTL entered into a TSA (the "KTL TSA") on March 14, 2016. The project was awarded by the Ministry of Power for a 35-year period from the scheduled commercial operation date of the KTL project, on a BOOM basis. The project has 6 elements. The project has one substation element, three transmission line elements, one LILO element and one line bay. The project is located in the state of Madhya Pradesh and Maharashtra. KTL was envisaged with the objective to improve power supply and grid reliability by delivering 1320MW of thermal power from Khargone power plant to consumers in the domestic, commercial, agricultural, and industrial segments in the state of Madhya Pradesh and Maharashtra.

Shares of India Grid Trust was last trading in BSE at Rs. 140.02 as compared to the previous close of Rs. 139.64. The total number of shares traded during the day was 2459 in over 60 trades.

The stock hit an intraday high of Rs. 140.70 and intraday low of 139.06. The net turnover during the day was Rs. 344217.00.

Source : Equity Bulls

Keywords

IndiaGridTrust InvIT INE219X23014 SharePurchaseAgreement Acquisition