In a significant move to expand its renewable energy portfolio, Infrastructure Investment Trust India Grid Trust (IndiGrid) has announced the signing of a share purchase agreement for the acquisition of 100 percent units in Virescent Renewable Energy Trust (VRET). The agreement comes at an enterprise value of up to Rs 4,000 crore in cash consideration.
According to the filing submitted to the BSE, the enterprise value will not exceed Rs 40 billion for cash consideration, subject to closing adjustments specified in the definitive documents. IndiGrid executed a unit purchase agreement, with the intention of acquiring all units of VRET from its unitholders in one or more tranches.
The completion of the acquisition is contingent upon the receipt of Unitholders’ consent, regulatory approvals, and fulfillment of contractual obligations. Terra Asia Holdings II Pte. Ltd. (Terra), the seller of VRET units, is controlled and/or managed and/or advised solely by Kohlberg Kravis Roberts & Co. L.P. (KKR Group) or its affiliates. Terra is also a related party of IndiGrid, along with one of its sponsors.
Virescent Renewable Energy Trust was established in 2020 with the objective of acquiring renewable energy assets in India, aligned with the country’s growing demand for clean energy sources. IndiGrid’s acquisition of VRET reaffirms its commitment to contributing to India’s renewable energy goals and strengthening its position in the sector.
The transaction marks a significant milestone for IndiGrid, enhancing its renewable energy assets and supporting the nation’s transition to a sustainable future.