IndiGrid Infra Trust launches institutional share sale to raise up to ₹1,500 crore; Details here

Units of IndiGrid Infrastructure Trust Ltd. are in focus on Tuesday, January 20, after the company launched a qualified institutional placement (QIP) to raise up to ₹1,500 crore.

According to sources in the know, the base issue size is said to be ₹1,200 crore with an additional greenshoe option will be worth ₹300 crore.

The QIP will result in the issue of 9.2 crore units at the upper end, with the base size said to be worth 7.3 crore units.

Floor price for the QIP has been approved as ₹167.42 per unit, which is at a premium compared to Monday's closing price, as per IndiGrid's exchange filing.

The investment manager and trustee will have a 90-day lock-up period from the allotment of units, while the sponsor will have a 60-day period, sources said.

Last month, IndiGrid Infra said it is acquiring Gadag Transmission Ltd. for an enterprise value of around ₹372 crore, excluding any net working capital and cash adjustments.

Gadag Transmission is an inter-state transmission system project operating under the build-own-operate-maintain model. It forms the first phase of the transmission infrastructure planned to evacuate nearly 2,500 MW of solar power from the Gadag Solar Energy Zone in Karnataka.

Gadag Transmission Ltd is jointly owned by ReNew Transmission Ventures Private Ltd (RTVPL) (51%) and KNI India AS (49%), a joint venture between Norfund and KLP. Once the transaction is completed, IndiGrid will acquire the entire shareholding and management control in accordance with the provisions of the definitive and concession agreements, including lock-in obligations therein

The acquisition is being funded via a combination of equity, internal accruals and debt. The net debt/AUM will be 60.5% post the acquisition, leaving adequate headroom for future growth.

Shares of IndiGrid Infra ended the previous session 0.9% lower at ₹164.11 apiece. The stock has gained 13.3% in the past year.

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