New Delhi: IndiGrid, India’s first and largest listed power sector infrastructure investment trust, announced the completion of its acquisition of a 300 MW AC solar asset, valued at approximately ₹15,500 million, excluding net working capital and cash adjustments.
This strategic move, in line with the share purchase agreement signed in January 2024, enhances IndiGrid’s portfolio to 19 solar projects across eight states, cumulatively generating 1.1 GWp, and elevates its Assets Under Management to around ₹282 billion.
The investment, financed through equity, internal accruals, and debt, is anticipated to contribute nearly ₹800 million annually to IndiGrid’s net distributable cash flow. Following this acquisition, the net debt to AUM ratio is expected to be about 63%.
The asset, ReNew Solar Urja Private Limited (RSUPL), situated in the high irradiation zone of Jaisalmer, Rajasthan, has been operational since December 2021. It has a 25-year Power Purchase Agreement with the Solar Energy Corporation of India (SECI), under which it sells electricity at ₹2.71 per unit.
RSUPL’s inclusion in IndiGrid’s portfolio marks a significant enhancement, being the largest capacity project situated at a single site within the company’s portfolio.
Harsh Shah, CEO and Whole Time Director of IndiGrid, commented on the acquisition, “Energy Transition in India is advancing swiftly as the country aims for its Net Zero commitments. Renewable generation holds a key position in this shift. RSUPL is a high-quality asset that will significantly increase IndiGrid’s NDCF. This acquisition aligns with our goal of providing a sustainable and superior risk-adjusted yield platform for our investors.”
