IndiGrid Infrastructure Trust has successfully completed the acquisition of Gujarat BESS Private Limited at an enterprise value of approximately ₹573 crore, marking its formal entry into the Battery Energy Storage System (BESS) segment. The transaction represents a strategic diversification beyond IndiGrid’s core transmission business, positioning the trust to play a growing role in grid stability and renewable energy integratioan.
IndiGrid Investment Managers Limited, the trust’s investment manager, made sure that the acquisition followed all the rules set out by the Securities and Exchange Board of India Infrastructure Investment Trust (InvIT) Regulations, 2014.
Transaction Structure and Investor Exit
The deal included buying securities from global investors, such as British International Investment PLC and Norfund (through KNI India AS). The deal was finished after Gujarat BESS Private Limited started doing business, which made sure the asset was ready for transfer of ownership.
Project Model and Revenue Outlook
The Gujarat BESS project will operate under a Build Own Operate (BOO) model, enabling IndiGrid to directly manage and operate the asset. The project was originally secured through tariff-based competitive bidding from Gujarat Urja Vikas Nigam Limited (GUVNL) in March 2024.
The project is expected to generate annual revenues exceeding ₹97 crore over a 12-year concession period, offering stable and predictable income streams aligned with IndiGrid’s investment strategy.
Strengthening Portfolio and Growth Pipeline
IndiGrid, which started in 2016, is India’s largest power sector infrastructure investment trust. Its portfolio is made up of low-risk, long-term contracted assets. Adding a BESS asset to its portfolio adds a new type of infrastructure and makes it easier for the company to support the use of renewable energy.
The acquisition builds on IndiGrid’s recent expansion initiatives, including projects such as Gadag Transmission Limited and agreements related to Morena I SEZ Transmission Limited. The trust has also outlined plans to pursue additional greenfield transmission and BESS opportunities.
This news highlights IndiGrid’s changing strategy to branch out into new areas of energy infrastructure while making its long-term revenue more predictable.
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