InvIT: IndiGrid Gets Investment Commitments From AIMCo, HDFC, Others

InvIT: IndiGrid Gets Investment Commitments From AIMCo, HDFC, Others

IndiGrid, a power sector infrastructure investment trust (InvIT), recently launched its preferential issue process following the successful conclusion of the Offer-for-Sale (OFS) by its sponsor, KKR.

IndiGrid has received investment commitments from Alberta Investment Management Corporation (AIMCo), one of Canada’s leading institutional investment managers, and HDFC Life, an insurance provider, for investments of Rs. 567 crores and Rs. 100 crores, respectively, with the balance committed by other investors. IndiGrid’s Distribution Per Unit (DPU) guidance for the full year FY2024-25 remains at Rs. 15, with the Q2 distribution expected in November, post the quarterly board meeting.

Ambit Capital and SBI Caps are managing the preferential issue process on IndiGrid’s behalf. Commenting on the announcement, Harsh Shah, Chief Executive Officer and Whole-Time Director of IndiGrid, said, “We are also delighted to welcome AIMCo and HDFC Life through a preferential issue, to our roster of reputed investors.”

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Last week, KKR successfully concluded an OFS process, reducing its unitholding from 21.17% to 3.85%. The OFS attracted significant attention from both IndiGrid’s current and new long-term investors, with the offering being oversubscribed by 2x, including both retail and non-retail categories.

“With significant sector tailwinds, strong investor confidence, and the global investment management expertise of KKR, we believe that IndiGrid will be able to deliver sustainable returns for its unitholders.” Commenting on the investment, Ahmed Mubashir, Managing Director, Head of EMEA and India Infrastructure at AIMCo, said: “The growth and decarbonization of India’s electricity sector presents an exciting opportunity for infrastructure investors. IndiGrid is a well-managed, transmission-focused platform providing its unitholders 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 is excited to further support that journey with this equity injection.”

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 acquired stakes in IndiGrid. KKR first invested in IndiGrid in 2019 and increased its stake in 2021 via its Asia Infrastructure Fund-1. After more than 5 years of holding, the fund has now monetized a portion of its unitholding.

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However, KKR will continue to sponsor IndiGrid and retain 100% ownership of IndiGrid Investment Managers Limited, which remains IndiGrid’s Investment Manager. Given the significant interest in the trust and its growth potential, IndiGrid recently launched its preferential issue process to raise Rs. 695 crores through a primary issuance of units at Rs. 136.43 per unit, in line with SEBI regulations for preferential issues by InvITs.