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US’KKR and Singapore’s GIC acquire stake in Indian InvIT [free access]

April 30, 2019

US-based investment private equity giant KKR and Singapore’s sovereign wealth fund GIC Private Limited have acquired a combined stake of 42 per cent in India’s leading infrastructure investment trust (InvIT) India Grid Trust (IndiGrid) owned by Sterlite Power Transmission Limited. Further KKR has applied to become a sponsor of IndiGrid and plans to acquire an additional 15 per cent stake in the InvIT.

 

For their 42 per cent share, KKR and GIC have together invested INR21 billion in a recently closed preference unit issuance by Sterlite Power worth INR25.14 billion. Of this, KKR invested about INR10.84 billion while GIC made an investment of INR9.8 billion.


In a separate transaction KKR will additional acquire a majority shareholding in Sterlite Investment Managers Limited (SIM), which manages the trust.

 

With the new infused capital, IndiGrid will acquire five more power transmission assets from Sterlite Power in the next two years, which will triple former’s assets under management (AUM) from INR52 billion to INR170 billion.

 

IndiGrid currently manages a portfolio of six electricity transmission assets with a total network of power transmission lines that span more than 3,361 circuit kilometers across nine Indian states. The platform will later be used to acquire more power transmission assets, including those in the renewable energy domain. It was set up in 2016 by Sterlite Power to own inter-state power transmission assets in India.

 

(INR1=USD0.014)