IndiGrid has announced that it has successfully raised INR 670 crores through an Institutional Placement (IP) process as laid out by SEBI. The IP process, launched on 5th December 2023, saw strong demand from both existing and new Indian and global institutional investors.
In September 2023, IndiGrid had raised over INR 400 crores through a preferential issue. With the recently concluded Institutional Placement, the company has successfully raised equity funds of ~INR 1070 crores in FY2023-24.
During the first half of this fiscal, IndiGrid acquired Virescent Renewable Energy Trust (VRET) at an enterprise valuation of INR 40 billion. VRET was India’s first and only renewable energy InvIT with a portfolio of 16 operational solar projects and a cumulative capacity of 538 MWp. The acquisition was funded through a combination of internal accruals, debt and capital raise and IndiGrid’s Net Debt to AUM reached 63.5% as on end of Q2 FY2023-24. Proceeds from the recently concluded Institutional Placement and those from the preferential allotment would be used for paring down the debt. With the capital raise, IndiGrid has created a significant debt headroom of ~INR 6,000-7,000 crores at the leverage cap of 70%.
Commenting on the placement, Harsh Shah, Chief Executive Officer, IndiGrid, said, “We are thankful to the investor community for their continued trust in the growth story of IndiGrid. We have consistently managed our unit holders’ funds very judiciously and have built a robust balance sheet and strong asset portfolio of transmission and solar assets across 20 states and 1 union territory of the country. This fund raise has helped us expand our unit holder base with more than 90% demand from long-term investors across insurance companies, pension funds, mutuals funds and domestic institutions to IndiGrid’s investor base.”
The Board of Directors of IndiGrid Investment Managers (the IM Board), acting in the capacity of investment manager of IndiGrid, approved the issuance and allotment of ~5.27 crore new units through this Institutional Placement to 11 eligible investors on December 8, 2023. More than 90% of incremental units were issued to insurance companies, mutual fund, pension funds and domestic institutions.
Axis Capital, Ambit, HSBC Securities and Capital Markets (India), and SBI Capital Markets served as Book Running Lead Managers for this placement. Cyril Amarchand Mangaldas (CAM) and S&R Associates acted as issuer counsel and bankers counsel respectively.
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