KKR-backed IndiGrid acquires $41m transmission asset
India Grid Trust (IndiGrid), an infrastructure investment trust backed by KKR and GIC Private, has acquired a power distribution company in north India for INR3.1 billion ($134 million).
According to a release, the asset in question is Jhajjar KT Transco (JKTL), an intra-state transmission network managed by two companies. It follows the purchase earlier in the year of a similar business that facilitates power exchange in northeastern India. Later in April, IndiGrid also acquired Gurgaon Palwal Transmission for INR10.8 billion.
IndiGrid now has 10 projects with a total network of 23 power transmission lines that span more than 6,000 circuit kilometers across 14 states. JKTL consists of three 400 KV transmission lines spread across 103 kilometers in Haryana in North India, including two substations with a transformation capacity of 830 mega volt-amps (MVA).
KKR and GIC acquired stakes in IndiGrid last year for INR20.6 billion. Infrastructure investment trusts are fund-like instruments that pool infrastructure assets and raise capital from institutional and retail investors.
Sterlite Power, a developer of power infrastructure in India and Brazil, created IndiGrid to support its plans to grow its global footprint. It operates the power distribution projects owned by the infrastructure investment trust. IndiGrid is India’s first infrastructure investment trust in the power sector.
IndiGrid shares closed at INR100.65 on May 28 following the JKTL announcement. This compares to INR82 at the time of KKR’s investment. The stock reached as high as INR109.9 last month.
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