Sterlite Power offloads 14.7% IndiGrid stake for Rs 840 crore

Electricity transmission infrastructure company Sterlite Power on Friday announced the sale of its 14.7% stake in India Grid Trust (IndiGrid) to institutional and high-net worth individual investors for Rs 840 crore. IndiGrid is an infrastructure investment trust (InvIt) backed by KKR and GIC, where Sterlite offloads its transmission assets. In the three years of its operations, IndiGrid’s asset under management (AUM) has grown from Rs 3,700 crore to Rs 12,000 crore.

The InvIt’s management recently said KKR had retained a majority 60% in the investment arm and would acquire 14%, subsequently, in May 2021. Sterlite Power continues to remain a shareholder of SIML, the investment manager of IndiGrid. KKR recently withdrew its intent to be the sponsor of IndiGrid.

Commenting on the transaction, Sterlite Power managing director Pratik Agarwal said, “We will now focus on our core business as the developer of power transmission assets,” adding that, “we firmly believe that InvITs will remain a powerful platform to meet the large-scale financing requirements of the infrastructure sector.”

Starting with asset monetisation of about Rs 3,800 crore in 2017, Sterlite Power has sold eight assets worth about Rs 11,500 crore to IndiGrid, to date. Another Rs 6,500 crore is likely to be transferred in the current financial year. Under its ‘asset flip’ strategy, Sterlite monetises constructed assets and free up capital to invest in other transmission projects. Apart from the eight Indian assets, the company has monetised three assets in Brazil using the same strategy.