India Grid Trust (IndiGrid), a prominent player in India’s renewable energy sector, has achieved a significant milestone by finalizing the acquisition of 100% of the units in Virescent Renewable Energy Trust (VRET) on August 25, 2023. The completion of this Unit Acquisition marks a crucial step in the expansion of India’s renewable energy capacity.
Following the successful Unit Acquisition, IndiGrid is set to undertake a series of strategic actions to further optimize and streamline its operations. These actions include:
Voluntary Delisting of Units: Following the InvIT Regulations, IndiGrid will proceed with the voluntary delisting of units associated with VRET.
Deregistration and Amendment: VRET will undergo deregistration as an InvIT and surrender its registration under the InvIT Regulations. Additionally, a key amendment will be made to VRET’s trust deed, eliminating all references to the InvIT Regulations.
Dissolution and Acquisition of Share Capital: VRET will be dissolved as a trust under the Indian Trusts Act, of 1882. Moreover, IndiGrid Limited, a holding company held by IndiGrid, will acquire 100% of the share capital of Virescent Infrastructure Investment Manager Private Limited and Virescent Renewable Energy Project Manager Private Limited.
The Enterprise Value of the transaction is set not to exceed ₹40 billion, subject to specific closing adjustments detailed in the definitive agreements. Notably, debt financing has been secured from various investors, resulting in a net debt to Assets Under Management (AUM) ratio of approximately 65% post-completion of the Unit Acquisition. IndiGrid has already received unitholders’ approval to raise equity to ₹15 billion, which will be executed in due course to support its strategic endeavors.
This Unit Acquisition adds an array of 16 operational solar projects held by 15 Special Purpose Vehicles (SPVs) to IndiGrid’s growing portfolio. The combined capacity of these solar projects is an impressive 538 MWp. This expansion significantly boosts IndiGrid’s AUM, reaching approximately INR 270 billion, with the overall solar capacity surging to 676 MWp. This equates to around 17% of IndiGrid’s total AUM, emphasizing its commitment to a greener energy mix.
The roster of assets acquired by IndiGrid from VRET encompasses a range of solar projects, including:
TN Solar Power Energy Private Limited (23 MW), Universal Mine Developers & Service Providers Private Limited (25 MW), Terralight Kanji Solar Private Limited (40 MW), Terralight Rajapalayam Solar Private Limited (50 MW), Solar Edge Power and Energy Private Limited (130 MW), Terralight Solar Energy Charanka Private Limited (13 MW), PLG Photovoltaic Private Limited (20 MW), Terralight Solar Energy Tinwari Private Limited (5 MW), Universal Saur Urja Private Limited (50 MW), Globus Steel & Power Private Limited (20 MW), Terralight Solar Energy Patlasi Private Limited (20 MW), Terralight Solar Energy Nangla Private Limited (4 MW), Terralight Solar Energy Gadna Private Limited (5 MW), Godawari Green Energy Limited (50 MW)
This acquisition underscores IndiGrid’s commitment to driving sustainable energy growth in India and contributing to the nation’s renewable energy targets. By bolstering its solar portfolio, IndiGrid is playing a crucial role in shaping India’s clean energy future.
