The Board of Investment Manager of IndiGrid has designated KKR as a sponsor of the InvIT.
Currently, Sterlite Investment Managers is the sponsor of IndiGrid, India’s first power sector InvIT. KKR and GIC jointly own 60 per cent in this InvIT.
In a filing to the exchanges, Esoteric II, the company which is affiliated with KKR, said: “We believe that IndiGrid is a differentiated platform and we continue to be excited about its growth potential. We would like to be sponsors and drive further value creation.”
As a part of the regulatory process, shareholders will now give their nod for the sponsor. “We seek to obtain approval from the requisite number of unitholders for being inducted as a sponsor of IndiGrid. We further seek to clarify that providing an exit option to the dissenting unitholders will be at our sole discretion, which will be intimated post declaration of results of the unitholders’ meeting,” the filing added.
This development comes a month after KKR backed off from buying an additional 15 per cent in IndiGrid, from Sterlite Power Grid Ventures Ltd (SPGVL). Regulations mandate an entity holding 75 per cent stake in an InvIT to be a sponsor.
“There was an agreement between Esoteric II, and SPGVL to transact on 15 percent of IndiGrid units. This agreement automatically expired in July 2020, on the long stop date as the transaction could not be consummated by that date, Harsh Shah, CEO, IndiGrid, had said at that time.
Subsequently, on August 14, Sterlite Pwer sold off its 14.7 per cent stake in India Grid Trust (IndiGrid) to institutional investors and High Networth Individuals (HNIs) for ₹840 crore.
After selling the stake, Sterlite Power will continue to remain a shareholder of Sterlite Investment Managers (SIML), the investment manager of IndiGrid. Sterlite Power is a global developer of power transmission infrastructure with projects of over 13,315 circuit km and 23,885 MVA in India and Brazil.
Investment in IndiGrid is KKR’s first investment in the infrastructure segment. Global investment funds such as KKR and GIC pumped in $400 million last year. IndiGrid’s Assets Under Management or AUM is estimated to be ₹13,300 crore and has ten power transmission projects with a total network of 25 power transmission lines and 7 substations that span 6,080 circuit kilometres across 15 States.