IndiGrid to acquire 100% stake in Khargone Transmission for Rs 1497 crore

India Grid Trust (IndiGrid) will acquire a 100 per equity stake in Khargone Transmission at an enterprise value of about Rs 1,497.5 crore.

The acquisition will be for a cash consideration of an enterprise value not exceeding Rs 1,497. 5 crore, according to a BSE filing.

IndiGrid signed a share purchase agreement on January 21, 2023, for the acquisition of a 100 per cent shareholding and economic interest, in one or more tranches, in Khargone Transmission Ltd from Sterlite Power Transmission Ltd (one of the Sponsor of IndiGrid), it stated.

The completion of the acquisition would depend upon receipt of Unitholders'' consent, regulatory and other relevant approvals as well as completion of contractual obligations, it explained.

The Khargone Transmission was incorporated on November 28, 2015.

The transmission project was awarded by the Ministry of Power for a 35-year period from the scheduled commercial operation date, 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.

The project 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.

IndiGrid Trust scrip traded lower 0.01 per cent at Rs 140 on BSE in late morning trade.