IndiGrid, a power-sector Infrastructure Investment Trust (InvIT), announced the execution of definitive agreements to acquire Gadag Transmission (GTL), a Karnataka-based Inter-State Transmission (ISTS) project, for an enterprise value (EV) of ~₹372 crore, excluding any net working capital and cash adjustments. Additionally, there will be an earn-out related to Change-In-Law (CIL), availability, and bilateral billing-related aspects to be paid to the sellers if and when the payment is received.
This acquisition will be funded through a combination of equity, internal accruals, and debt. The net debt/AUM will be ~60.5% post this acquisition, leaving adequate headroom for future growth.
GTL is a Build-Own-Operate-Maintain (BOOM) ISTS asset, and first phase of the transmission scheme envisaged to evacuate around 2,500 MW of solar power from the Gadag Solar Energy Zone in Karnataka. Operational since September 2024, the asset comprises ~187 circuit kilometres of transmission lines and a 1,000 MVA substation, with scope for future augmentation.
GTL is jointly owned by ReNew Transmission Ventures (RTVPL) (51%) and KNI India AS (49%), a joint venture between Norfund and KLP.
Upon completion of the transaction, IndiGrid will acquire full shareholding and management control in accordance with the provisions of the definitive and concession agreements, including lock-in obligations therein.
Harsh Shah, Managing Director of IndiGrid, said, “India’s energy transition demands a robust and future-ready transmission infrastructure. Gadag Transmission plays a pivotal role in evacuating renewable energy from one of the country’s largest solar zones and perfectly complements our strategy to own and operate critical grid assets. This acquisition further strengthens our portfolio in Karnataka and reinforces our commitment to delivering long-term value to our unitholders while supporting India’s renewable integration journey.”
