IndiGrid acquires 300 MW AC solar asset for enterprise valuation of INR 15,500 mn

With the addition of this asset, IndiGrid’s portfolio now comprises 19 solar projects across 8 states of the country, boasting a total generation capacity of 1.1 GWp.

IndiGrid, India’s first and largest listed power sector infrastructure investment trust (InvIT), announced recently that it has completed the acquisition of a 300 MW AC solar asset for an Enterprise Valuation of approximately INR 15,500 million, exclusive of net working capital and cash adjustments. This transaction aligns with the share purchase agreement signed in January 2024. With the addition of this asset, IndiGrid’s portfolio now comprises 19 solar projects across 8 states of the country, boasting a total generation capacity of 1.1 GWp. IndiGrid’s total Assets Under Management now stand at approximately INR 282 billion.

The funding for this acquisition has been sourced through a combination of equity, internal accruals, and debt. It is expected to contribute approximately INR 800 million of net distributable cash flow to IndiGrid annually. Following this acquisition, the net debt/AUM ratio will be approximately 63 percent.

Operational since December 2021, ReNew Solar Urja Private Limited (RSUPL) is situated in the high irradiation region of Jaisalmer, Rajasthan. It holds a 25-year Purchase Power Agreement (PPA) with Solar Energy Corporation of India (SECI) to sell power generated at a tariff of INR 2.71 per unit. RSUPL is a strategic addition to IndiGrid’s portfolio as it represents the largest capacity project located at a single site for the company.

Commenting on the acquisition, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, said,” Energy Transition in India is progressing at a rapid pace as the country works towards achieving its Net Zero commitments. Renewable generation is strategically positioned to play a pivotal role in this journey in the coming years. RSUPL is a high-quality asset and will add accretive NDCF for IndiGrid. We are excited about this transaction as it is in-line with our objective to be a sustainable and superior risk-adjusted yield platform for our investors.”