India Grid Trust (IndiGrid) has completed the acquisition of a 300-mw solar power asset, taking its overall solar portfolio to over 1 GW.
In a release, IndiGrid announced that it has consummated transaction of 300 mw (AC) solar asset for an Enterprise Valuation of around Rs.15,500 million, exclusive of net working capital and cash adjustments, in line with the share purchase agreement that was signed in January 2024.
With this asset addition, IndiGrid’s portfolio now consists of 19 solar projects across 8 states of the country with a total generation capacity of 1.1GWp. IndiGrid’s total AUM (assets under management) now stands at around Rs.282 billion.
This acquisition has been funded through a combination of equity, internal accruals, and debt and will add Rs.80 crore of net distributable cash flow, to IndiGrid, every year.
Operational since December 2021, ReNew Solar Urja Pvt Ltd (RSUPL) is located in the high irradiation region of Jaisalmer, Rajasthan and has a 25-year PPA with Solar Energy Corporation of India (SECI) to sell power generated at a tariff of Rs.2.71 per unit.
RSUPL is a strategic addition to IndiGrid’s portfolio as it would be the largest capacity project located at a single site for the company, the release noted.
Working towards Net Zero commitment
Commenting on the acquisition, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, said, ”Energy Transition in India is progressing at a rapid pace as the country works towards achieving its Net Zero commitments. Renewable generation is strategically positioned to play a pivotal role in this journey in the coming years. RSUPL is a high-quality asset and will add accretive NDCF for IndiGrid. We are excited to about this transaction as it is in-line with our objective to be a sustainable and superior risk-adjusted yield platform for our investors.”
Also read: IndiGrid’s Transmission Portfolio Touches 8,468 Ckm
Featured photograph (source: ReNew Power) is for representation only.
