Infrastructure investment trust IndiGrid said Wednesday the board of Sterlite Investment Managers has approved a preferential issue of units of India Grid Trust to raise Rs 2,560 crore.
Sterlite Investment Managers is the investment manager of the India Grid Trust (IndiGrid), an infrastructure investment trust sponsored by Sterlite Power Grid Ventures Ltd.
The board of Sterlite Investment Managers approved a preferential issue of units of IndiGrid to raise up to Rs 2,560 crore in its meeting held on April 30, 2019, IndiGrid said in a BSE filing.
IndiGrid, which comprises power transmission projects, plans to raise Rs 2,064 crore from KKR and GIC out of total primary capital raising of Rs 2,560 crore. The proceeds will be used to acquire transmission assets.
The board also approved a proposal to sign definite agreements by IndiGrid to acquire five transmission assets worth Rs 11,500 crore from Sterlite Power.
The decision of the board to raise fund and acquire assets would expand IndiGrid's portfolio from six projects to 11 projects over the next two years, and AUM (assets under management) will grow from Rs 5,300 crore to Rs 17000 crore (post completion of the entire transaction), the filing said.
Earlier the unitholders of lndiGrid had approved a proposal for raising capital on July 26, 2018 by way of a preferential issue of units of IndiGrid.
The board also considered non-binding commitment letter received from Esoteric II Pte Ltd (Esoteric), an affiliate of KKR & Co Inc (KKR) and GIC Infra Holdings Pte Ltd (GIC) for investment in the lndiGrid for an amount equivalent to Rs 1,084 crore and Rs 980 crore respectively.
The board also considered and approved designating Esoteric as a sponsor of lndiGrid (along with the current Sponsor Sterlite Power Grid Ventures Ltd ) and corresponding amendment to trust deed.
The board also decided to authorise execution of definitive agreement with Electron IM Pte Ltd (Electron), an affiliate of KKR & Co. Inc. (KKR) for investment by Electron in the Investment Manager and the consequent change in control of the Investment Manager.
Disclaimer: No Business Standard Journalist was involved in creation of this content
