Wire & Cable India

IndiGrid Completes Acquisition of ENICL From Sterlite Power

According to the press release, with the acquisition of East North Interconnection (ENICL) from Sterlite Power, IndiGrid’s assets under management (AUM) will increase by 10 per cent to USD 1.6 billion.

March 24, 2020

The acquisition has been funded by internal accruals.

Power transmission investment trust IndiGrid has completed the acquisition of its ninth transmission asset from Sterlite Power at a value of USD 134 million or Rs 1,020 crore.

Its portfolio will increase to nine power transmission projects with a total network of 20 power transmission lines spanning across more than 5,800 circuit kilometres across 13 Indian states.

Commenting on the acquisition, IndiGrid CEO Harsh Shah said, “this acquisition is in line with our strategy to acquire accretive assets with long term certainty of cash flows. Our focus is to not only ensure stable distribution to unit holders by owning assets with long term contracts but also grow it with accretive acquisitions.”

The acquisition has been funded by internal accruals, proceeds from the preference issue done in May last year and new debt. For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed funding of Rs 900 crore from Axis Bank. With this acquisition, IndiGrid’s net debt/AUM will be at 49 percent.

Wire & Cable India