This institutional placement exceeds IndiGrid’s total equity funds raised in FY 2023-24 approximately to INR 1070 crores.
IndiGrid, India’s first publicly listed power sector Infrastructure Investment Trust, successfully completed an Institutional Placement (IP) that raised INR 670 crores, adhering to SEBI guidelines. Launched on December 5, 2023, the IP garnered strong participation from existing and new domestic and international institutional investors. This success follows IndiGrid’s September 2023 preferential issue, which generated over INR 400 crores. With the latest Institutional Placement, IndiGrid’s total equity funds raised in FY 2023-24 exceed approximately INR 1070 crores.
Earlier in the fiscal year, IndiGrid acquired Virescent Renewable Energy Trust (VRET) for an enterprise valuation of INR 40 billion. VRET, India’s only renewable energy InvIT, had a portfolio of 16 operational solar projects with a combined capacity of 538 MWp. The acquisition was financed through internal accruals, debt, and capital raising, increasing IndiGrid’s Net Debt to AUM to 63.5% by Q2 FY 2023-24. The funds from the recent Institutional Placement and the preferential allotment are designated for debt reduction, providing IndiGrid with significant debt capacity, around INR 6,000-7,000 crores, at a leverage cap of 70%.
Harsh Shah, CEO of IndiGrid, emphasized IndiGrid’s effective management of unitholders’ funds, noting its solid balance sheet and diverse asset portfolio, which includes transmission and solar assets across 20 states and 1 union territory in India. The latest fundraising expanded IndiGrid’s investor base, with over 90% of demand coming from long-term investors, including insurance companies, pension funds, mutual funds, and domestic institutions.
The IM Board of IndiGrid Investment Managers Limited approved the issue and allocation of approximately 5.27 crore new units to 11 eligible investors on December 8, 2023, through the Institutional Placement. Notably, insurance companies, mutual funds, pension funds, and domestic institutions subscribed to more than 90% of these units.
The book running lead managers for this placement included Axis Capital Limited, Ambit Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Limited. Cyril Amarchand Mangaldas (CAM) and S&R Associates served as the legal counsel for the issuer and the bankers, respectively.
