IndiGrid Collects 670 Crores via Institutional Placement, Surpassing 1,050 Crores in Total Equity Raised for FY2023-24

India’s pioneering publicly listed power sector Infrastructure Investment Trust (InvIT), IndiGrid [BSE: 540565 | NSE: INDIGRID], announced a triumphant Institutional Placement (IP) that amassed INR 670 crores, conforming to SEBI’s protocols. Commencing on December 5, 2023, the IP witnessed robust interest from both existing and new Indian and global institutional investors.

This achievement follows a September 2023 preferential issue that yielded over INR 400 crores. Combined with the recent Institutional Placement, IndiGrid’s equity funds raised in FY2023-24 surpass the milestone of approximately INR 1070 crores.

During the initial half of this fiscal year, IndiGrid acquired Virescent Renewable Energy Trust (VRET) at an enterprise valuation of INR 40 billion. VRET stood as India’s sole renewable energy InvIT, boasting a portfolio of 16 operational solar projects with a cumulative capacity of 538 MWp. The acquisition was funded through internal accruals, debt, and capital raise, propelling IndiGrid’s Net Debt to AUM to 63.5% by the end of Q2 FY2023-24. The proceeds from the recent Institutional Placement, coupled with those from the preferential allotment, are earmarked for debt reduction. This capital infusion grants IndiGrid significant debt headroom, approaching approximately INR 6,000-7,000 crores at a leverage cap of 70%.

Harsh Shah, the CEO of IndiGrid, expressed gratitude to the investor community for their unwavering confidence in the organization’s growth trajectory. He highlighted IndiGrid’s prudent management of unitholders’ funds, emphasizing the robust balance sheet and a diverse asset portfolio comprising transmission and solar assets across 20 states and 1 union territory in India. The recent fundraise broadened IndiGrid’s investor base, witnessing over 90% demand from long-term investors like insurance companies, pension funds, mutual funds, and domestic institutions.

The IM Board of IndiGrid Investment Managers Limited approved the issuance and allocation of approximately 5.27 crore new units to 11 eligible investors through this Institutional Placement on December 8, 2023. Notably, more than 90% of the additional units were subscribed by insurance companies, mutual funds, pension funds, and domestic institutions.

Axis Capital Limited, Ambit Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Limited acted as Book Running Lead Managers for this placement. The legal counsel roles were fulfilled by Cyril Amarchand Mangaldas (CAM) and S&R Associates as issuer counsel and bankers counsel, respectively.