- With this transaction, IndiGrid’s solar portfolio has surpassed the 1 GWp capacity mark.
- This addition to the asset base is expected to contribute approximately INR 800 million to IndiGrid’s Net Distributable Cash Flow (NDCF) annually.
INDIGRID has completed the acquisition of a 300 MW AC solar asset for an Enterprise Valuation of approximately INR 15,500 million, excluding net working capital and cash adjustments. This acquisition, following the share purchase agreement signed in January 2024, expands IndiGrid’s portfolio to 19 solar projects across eight states, boasting a total generation capacity of 1.1 GWp. Consequently, IndiGrid’s Assets Under Management surged around INR 282 billion.
The funding for this acquisition was sourced through a mix of equity, internal accruals, and debt, and is expected to contribute approximately INR 800 million of net distributable cash flow to IndiGrid annually. Post-acquisition, the net debt/AUM ratio stands at about 63%. ReNew Solar Urja Private Limited (RSUPL), operational since December 2021, is situated in the high irradiation region of Jaisalmer, Rajasthan. It has a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) to sell power at a tariff of INR 2.71 per unit. The addition of RSUPL marks a strategic move for IndiGrid, as it becomes the company’s largest capacity project located at a single site.
Harsh Shah, CEO and Whole Time Director of IndiGrid, commented on the acquisition: “India’s energy transition is advancing rapidly as the country strives to meet its Net Zero commitments. Renewable generation is poised to play a crucial role in this journey. RSUPL is a high-quality asset that will provide accretive net distributable cash flow for IndiGrid. We are excited about this transaction as it aligns with our goal to be a sustainable and superior risk-adjusted yield platform for our investors.”
