India Grid Trust, a power sector infrastructure investment trust (InvIT), announced that Alberta Investment Management Corporation (AIMCo) and HDFC Life will invest ₹567 crore and ₹100 crore, respectively.
IndiGrid also announced that it has launched a preferential issue process to raise ₹695 crore following the successful conclusion of the Offer-for-Sale (OFS) run by its sponsor KKR. The new issue will be priced at Rs 136.43 per unit.
“IndiGrid has received investment commitments from Alberta Investment Management Corporation (AIMCo), one of Canada’s largest and most diversified institutional investment managers, and HDFC Life, one of India’s leading Insurance providers, for an investment of ~INR 567 crores and ~INR 100 crores respectively, with balance committed by other investors,” IndiGrid said in a statement.
Last week, KKR successfully concluded an OFS process to bring their unitholding down from 21.17% to 3.85%. The OFS attracted significant attention from IndiGrid’s current as well as new long-term investors with the OFS being over-subscribed ~2x times, including both retail and non-retail categories. Marquee investors like L&T, HSBC Global Asset Management, SBI Life Insurance, Aditya Birla MF, Cholamandalam General Insurance, PNB Metlife, Future Generali, and others participated and picked up a stake in IndiGrid.
KKR had first invested in IndiGrid in 2019 and increased their stake further in 2021 via its Asia Infrastructure Fund-1. With over 5 years of holding period, the fund has now monetized a portion of its unitholding. However, KKR will continue to be the sponsor of IndiGrid and continue to own 100% of IndiGrid Investment Managers Limited – which remains IndiGrid’s Investment Manager.
IndiGrid’s Distribution Per Unit (DPU) guidance for the full year FY2024-25 continues to be at INR 15, with the quarter 2 distribution expected to be made in November post the quarterly board meeting.
Ambit Capital and SBI Caps are running the preferential issue process on IndiGrid’s behalf.
Commenting on the announcement, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, said, “It is a heartening moment for us to witness such significant confidence from all classes of investors, and we are pleased to welcome multiple marquee investors on the back of the OFS. We are also delighted to welcome AIMCo and HDFC Life, through a preferential issue, in our roster of reputed investors. IndiGrid has been the largest and one of the most successful publicly listed InvITs with a strong track record of predictable DPU and growth. With significant sector tailwinds, strong investor confidence and global investment management expertise of KKR, we believe that IndiGrid will be able to deliver sustainable shareholder returns for its unitholders.”
Commenting on the investment, Ahmed Mubashir, Managing Director, Head of EMEA and India, Infrastructure from AIMCo, said, “The growth and decarbonization of India’s electricity sector presents itself as an exciting opportunity for infrastructure investors. IndiGrid is a well-managed, transmission-focused platform providing its unit holders exposure to stable, contracted, long-term cash flows. This aligns well with our infrastructure strategy in India. AIMCo is also impressed by IndiGrid‘s track record of enabling accretive growth and are excited to be further supporting and enabling that journey with this equity injection.”
