Mumbai: Sterlite Power, a private sector power transmission project developer, on Friday said that it has sold its 14.7% stake in India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT) to institutional and HNI investors, for ₹840 crore.
Sterlite Power is the sponsor of IndiGrid, India’s first power sector InvIT, which went public in 2017.
Engineering giant Larsen & Toubro Ltd, Morgan Stanley Asia Singapore PTE and Societe Generale were among the buyers, data from stock exchanges shows. L&T bought IndiGrid units worth ₹250 crore.
Sterlite sold the stake at a price of ₹98 per unit. On Friday, IndiGrid closed trading at Rs101 per unit, up 0.74% on the BSE.
"We will now focus on our core business as the developer of power transmission assets. We remain committed to executing asset transfers of about INR 6500 crores as per the framework agreement with IndiGrid," said Pratik Agarwal, managing director, Sterlite Power.
“We firmly believe that InvITs will remain a powerful platform to meet the large-scale financing requirements of the Infrastructure sector. The global financial markets will remain in yield-seeking mode for a considerable period, and this will provide enough capital supply to well-managed REITs and InvITs", he further added.
Private equity investor KKR and Singapore's state investor GIC are major shareholders in IndiGrid. KKR also owns a 60% stake in IndiGrid's investment manager Sterlite Investment Managers Ltd, with the rest held by Sterlite.
Investment bank Edelweiss advised Sterlite on the stake sale. Law firm Khaitan & Co was the legal advisor to Sterlite.
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