IndiGrid Infrastructure Trust has entered into agreements to acquire Luhri Power Transmission Limited (LPTL) from Enerica ReGrid Infra Private Limited (EnerGrid) or one of its group entities, with the proposed transaction valued at an enterprise value of up to ₹1,336 crore, subject to closing adjustments.
Luhri Power Transmission Limited is an inter-State Transmission System (ISTS) project in the power transmission sector. The project is being developed to establish a transmission system for the evacuation of power from the Sunni Dam Hydro Electric Power Project (HEP) and Luhri Stage-I HEP.
LPTL was incorporated on October 28, 2022, by REC Power Development and Consultancy Limited (REC) for executing the transmission project. The project’s expected Commercial Operation Date (COD) is in Q3 FY2030.
The target entity currently has a paid-up capital of ₹5 lakh and has reported no turnover as it is currently under construction.
IndiGrid said the acquisition is aligned with its investment strategy of owning assets backed by long-term contracts, with the objective of supporting stable distributions to its unitholders.
The transaction is proposed to be completed at an enterprise value not exceeding ₹13,360 million (₹1,336 crore), subject to the closing adjustments specified in the agreements. The consideration will be in cash or another mutually agreed manner, subject to applicable conditions.
Subject to the required approvals and transaction conditions, IndiGrid will acquire the entire shareholding and management control of LPTL in one or more tranches after the project becomes a completed and revenue-generating asset in accordance with the Transmission Service Agreement (TSA).
IndiGrid is India’s first and largest publicly listed Infrastructure Investment Trust (InvIT) in the sector. It owns, operates, and manages power transmission, renewable generation, and energy storage assets that deliver reliable power throughout India. IndiGrid was established on October 21, 2016, and is registered with SEBI following the InvIT Regulations. Backed by KKR, IndiGrid is India’s first yield platform in the power sector offering investors an attractive cash yield, backed by AAA-rated cash flows from the long-term operating transmission, solar, and energy storage assets.
We intend to empower the nation by delivering reliable power to each and every home while also creating value for our investors. This way, we can continue to ensure a positive impact on India’s power connectivity and infrastructure development while delivering superior risk-adjusted returns to our unitholders. As India progresses in its energy transition journey, we look forward to enabling ownership of diversified power assets under IndiGrid, to drive our vision and mission of becoming the most admired yield vehicle in Asia.
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