India Grid Trust (IndiGrid), the country’s first infrastructure investment trust (InvIT) focused on power sector infrastructure, has announced the acquisition of transmission and solar assets from ReNew Power for a total enterprise value of ₹2100 crore. This strategic move underscores IndiGrid’s commitment to expanding its renewable energy portfolio and enhancing its position in the Indian power sector.
Acquisition Details
The acquisition comprises two key assets:
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ReNew Solar Aayan Private Limited (RSAPL): A 300 MW (AC) operational solar project located in Barmer, Rajasthan, known for its high solar irradiation. The project has been operational since March 2024 and benefits from a long-term 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) at a fixed tariff of ₹2.37 per unit.
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Koppal Narendra Transmission Project: A transmission asset that complements the solar project, facilitating efficient power evacuation and distribution.
The total enterprise value for the acquisition is approximately ₹2100 crore, with adjustments bringing the final value to not exceed ₹2175 crore. IndiGrid has executed definitive agreements to acquire 100% shareholding and management control of both assets, subject to requisite regulatory approvals.
This acquisition aligns with IndiGrid’s strategy to enhance its renewable energy portfolio and provide sustainable, long-term returns to its investors. The addition of RSAPL increases IndiGrid’s solar capacity to over 1.1 GWp, solidifying its position as a leading player in India’s renewable energy sector.
The Koppal Narendra Transmission Project complements the solar asset by ensuring efficient power evacuation and distribution, thereby enhancing the overall efficiency and reliability of the power supply. This integration of solar and transmission assets reflects IndiGrid’s commitment to providing integrated solutions in the renewable energy sector.
The acquisition is expected to be funded through a combination of equity, internal accruals, and debt. The net debt to Assets Under Management (AUM) ratio is projected to be approximately 63% post-acquisition, leaving adequate headroom for future growth. The addition of these assets is anticipated to contribute significantly to IndiGrid’s net distributable cash flow, enhancing its ability to deliver consistent and sustainable returns to investors.
IndiGrid’s acquisition of transmission and solar assets from ReNew Power marks a significant step in its journey towards becoming a leading provider of renewable energy infrastructure in India. By expanding its portfolio and integrating solar and transmission assets, IndiGrid is well-positioned to capitalize on the growing demand for clean and sustainable energy solutions in the country.
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