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IndiGrid has raised ₹670 crore through an institutional placement of shares, taking its total raise in the current fiscal year to ₹1070 crore. The funds would be used to reduce debt.
The power infrastructure investment trust said it received strong demand from 11 existing and new domestic as well as global investors. The majority of investors included insurance companies, mutual funds, pension funds and domestic institutions.
In September, the InvIT had raised ₹400 crore through a preferential issue.
During the first half of this fiscal, IndiGrid acquired Virescent Renewable Energy Trust at an enterprise valuation of ₹4000 crore.
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Virescent Renewable has a portfolio of 16 operational solar projects and a cumulative capacity of 538 MWp. The acquisition was funded through a combination of internal accruals, debt and capital raise and the ratio of IndiGrid’s net debt to assets under management reached 63.5 per cent at the end of the September quarter.
With the funds raised and debt reduction, IndiGrid has created sufficient debt headroom of ₹6000-7000 crore at the leverage cap of 70 per cent, it said.
“This fund raise has helped us expand our unit holder base with more than 90 per cent demand from long-term investors across insurance companies, pension funds, mutuals funds and domestic institutions to IndiGrid’s investor base,” said Harsh Shah, Chief Executive Officer of IndiGrid.
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