IndiGrid Raises Rs 670 Crore Via Institutional Placement

Infrastructure investment trust IndiaGrid has raised Rs 670 crore through institutional placement.

IndiGrid, India's first publicly listed power sector Infrastructure Investment Trust (InvIT) has successfully raised Rs 670 crore through an Institutional Placement process as laid out by SEBI, a statement said.

According to the statement, the IP process, launched on Dec 5, 2023, saw strong demand from both existing and new Indian and global institutional investors.

In September 2023, IndiGrid had raised over Rs 400 crore through a preferential issue. With the recently concluded Institutional Placement, the company has successfully raised equity funds of Rs 1,070 crore in FY2023-24.

"This fundraise 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,' Harsh Shah, Chief Executive Officer of IndiGrid, said in the statement.

Proceeds from the recently concluded institutional placement and those from the preferential allotment would be used for paring down debt.

"With the capital raise, IndiGrid has created a significant debt headroom of around Rs 6,000-7,000 crore at the leverage cap of 70%," the statement said.

"The board of directors of IndiGrid Investment Managers Ltd, acting in the capacity of investment manager of IndiGrid, approved the issuance and allotment of 5.27 crore new units through this Institutional Placement to 11 eligible investors on December 8, 2023.

More than 90% of incremental units were issued to insurance companies, mutual funds, pension funds and domestic institutions.

Axis Capital Limited, Ambit Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Ltd served as Book Running Lead Managers for this placement.

Cyril Amarchand Mangaldas (CAM) and S&R Associates acted as issuer counsel and bankers counsel respectively.