Sterlite Power said it has sold 14.7 percent stake in India Grid Trust (IndiGrid) for Rs 840 crore at a unit price of Rs 98 to institutional and high net worth individual (HNI) investors.
Pratik Agarwal, Managing Director, Sterlite Power said the company will remain committed to executing asset transfers of about Rs 6,500 crore as per the framework agreement with IndiGrid.
IndiGrid is India’s first infrastructure investment trust (InvIT) in the power sector.
Moneycontrol on August 14 was the first to break the news that IndiGrid had launched unit sale for around 14 percent stake to raise around Rs 825-850 crore.
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“Sterlite Power is proud to have played a role in creating India’s first power sector InvIT which has grown over the years with participation from marquee investors. We will now focus on our core business as the developer of power transmission assets,” Agarwal added.
Agarwal noted that InvITs will remain a “powerful platform” to meet large-scale financing requirements of the infrastructure sector. “The global financial markets will remain in yield-seeking mode for a considerable period, and this will provide enough capital supply to well-managed REITs and InvITs, he added.
One source told Moneycontrol the deal is a secondary sale to generate additional liquidity, and another said the sale of units has been priced at a discount of 1.26 percent to 3.25 percent of today’s closing price of Rs 100.26. Citi & Edelweiss are the brokers/advisors to the deal. These details were also confirmed by a third person.
All the individuals spoke to Moneycontrol on condition of anonymity. Moneycontrol could not immediately contact IndiGrid, KKR, Edelweiss and Citi for comments.
Sterlite Power is the sponsor of IndiGrid, and continues to remain a shareholder of Sterlite Investment Managers (SIML), the investment manager of IndiGrid, the company said.
IndiGrid owns nine operating projects consisting of 20 transmission lines with more than 5,800 km length and 4 substations with 7,735 MVA transformation capacity. It has assets under management (AUM) worth $1.61 billion. IndiGrid is managed by SIML, which is majority owned by KKR.
