IndiGrid to raise Rs 1,283.65 crore via rights issue

In a first rights issue by a public-listed infrastructure investment trust (InvIT), IndiGrid Investment Managers, plans to raise Rs 1,283.65 crore through rights issue to fund future acquisitions and pay existing debt. The rights issue has been priced at Rs 110 per unit and will open on April 6 and close on April 13.

Harsh Shah, CEO of IndiGrid, told FE that the issue would help them raise pre-emptive equity to create leverage headroom and capitalise on future growth opportunities. “The proceeds will be used to fund NER-II acquisition, repay some debt and create a war-chest to support future acquisitions and other general corporate funding,” Shah said.

Under the issue, every eligible unitholder of IndiGrid will get 1-lot for every 5-lots held by them. The fractional entitlements or lots more than five but less than 10, or not in multiple of five, will get credited to a suspense account, the company said.

If the unitholding of any of the eligible unitholders is less than five lots or is not in the multiple of five lots, the fractional entitlements of such eligible unitholders shall be ignored. “However, the eligible unitholders whose fractional entitlements are being ignored, will be given preferential consideration for the allotment of one additional lot, if they apply for additional lot in the issue over and above their rights entitlements,” the company said.

While the rights entitlements are eligible for trading on the stock exchanges platform, the fractional entitlements are not.

The sponsors of IndiGrid will subscribe to the full extent of their aggregate rights entitlement. KKR sponsor will subscribe to all of the unsubscribed portion in the issue. “Role of KKR is that they are underwriting the rights issue in case of any lower subscription – it is a show of confidence by our sponsors,” Shah said.