On Tuesday, IndiGrid, an Infrastructure Investment Trust (InvIT) in the electricity sector, announced the signing of final agreements to purchase Gadag Transmission, an Inter-State Transmission (ISTS) project located in Karnataka, for ₹372 crore, net working capital and cash adjustments excluded.
Additionally, there will be an earn-out linked to change in legislation, availability, and bilateral billing-related factors to be paid to the sellers if and when the payment is received.
A Build-Own-Operate-Maintain (BOOM) ISTS facility, GTL’s first transmission phase aims to remove around 2,500 MW of solar energy from Karnataka’s Gadag Solar Energy Zone.
Operational since September 2024, the infrastructure has 187 circuit kilometers of transmission lines and a 1,000 MVA substation, with opportunity for future expansion.
GTL is jointly owned by ReNew Transmission Ventures Private, which owns 51 per cent and KNI India AS, which has the rest. KNI India is a joint venture between Norfund and KLP.
On completion of the deal, IndiGrid will acquire complete shareholder and managerial control in line with the conditions of the final and concession agreements, including lock-in requirements therein.
This transaction will be financed via a mix of stock, internal accruals, and debt. After this transaction, the net debt to AUM will be 60.5%, providing sufficient headroom for future expansion.
