IndiGrid raises INR 2,514 crore through a preferential issue to institutional investors, a first by listed InvIT under the SEBI Preferential Issue Guidelines for InvITs

June 3, 2019, Mumbai/New Delhi: Cyril Amarchand Mangaldas (CAM) acted as the legal counsel to IndiGrid and the sponsor, Sterlite Power Grid Ventures Limited (Sterlite Power) in raising a primary capital of INR 2,514 crore. The Issue was subscribed by Esoteric II Pte. Ltd., an affiliate of KKR & Co. Inc (KKR), and GIC Infra Holdings Pte. Ltd. an affiliate of GIC Pte. Ltd (Issue).

The Issue is the first preferential issue by a listed InvIT under the SEBI Preferential Issue Guidelines for InvITs and the first private investment in public equity (PIPE) transaction by an InvIT.

The proceeds of the Issue will be used for financing the acquisition of two operating transmission assets, i.e., NRSS XXIX Transmission Limited and Odisha Generation Phase II Transmission Limited for an aggregate enterprise value of INR [3,829 crore and INR 1,210 crore], definitive documents for which were executed simultaneously. Further, the Transaction provides IndiGrid and Sterlite Investment with a pipeline of acquisition of three additional operating transmission assets from Sterlite Power for an aggregate enterprise value for INR 6,500 crore.

Additionally, the Transaction also provides for the sale by Sterlite Power Transmission Limited of 74% controlling stake in Sterlite Investment (the investment manager of IndiGrid) to a KKR affiliate entity.

The Capital Markets, Corporate and Competition Law practices of Cyril Amarchand Mangaldas advised on the Transaction

The Capital Markets team was led by Kranti Mohan, Partner; with support from Janhavi Seksaria, Principal Associate; Anjaneya Das, Senior Associate; Shavya Kumbhat, Associate; Amitpal Singh, Associate; Anurag Gupta, Associate and Mrudul Desai, Associate.

The Corporate team was led by Pranay Chandran, Partner; with support from Aishwarya K, Principal Associate; Bhargav Joshi, Principal Associate; Ayushi Sutaria, Senior Associate; Shweta Sriram, Associate; Niyati Dholakia, Associate; Mehreen Zafar, Associate and Aditya Sood, Associate

The Competition team was led by Bharat Budholia, Partner and Avaantika Kakkar, Partner, with support from Aishwarya Gopalakrishnan, Principal Associate; and Kaustav Kundu, Principal Associate.

The other parties and advisors involved in the Transaction included:

  • Book running lead managers (BRLMs) for the Issue were Edelweiss Financial Services Limited; Axis Capital Limited; Citi Global Markets India Private Limited; and IndusInd Bank Limited.
  • Latham & Watkins LLP (International legal counsel to the BRLMs)
  • Simpsons Thacher and Bartlett LLP (International legal counsel to KKR & Co. Inc.)
  • EY (transaction advisors to KKR & Co. Inc.)
  • Khaitan & Co, AZB & Partners and Nishith Desai Associates

The Issue opened on April 30, 2019 and closed on May 4, 2019.