IndiGrid Raises ₹6.7 Billion Through Institutional Placement of Shares

The company raised equity of ₹10.7 billion in the financial year (FY) 2023-2024

December 11, 2023


Power sector Infrastructure Investment Trust (InvIT), IndiGrid, has raised ₹6.7 billion  ($80.35 million) through the institutional placement of shares, bringing the total to 10.7 billion (~$128.32 million) in the financial year (FY) 2023-24.

In September, the company had raised ₹4 billion ($47.96 million) via institutional placement of shares.

In the first half of the fiscal year, IndiGrid acquired Virescent Renewable Energy Trust for ₹40 billion ($479.71 million). VRET is a renewable energy InvIT with 16 operational solar projects and a cumulative capacity of 538 MW.

About 52.7 million new units were sold to 11 investors, with most incremental units issued to insurance companies, mutual funds, pension funds, and domestic institutions.

The funding for the acquisition was a combination of internal accruals, debt, and capital raise. Eventually, IndiGrid’s net debt to assets under management reached 63.5% at the end of FY 2023-2024. The company is trying to reduce its debt by using the revenue from recent institutional placements and preferential allotments.

Post the latest fundraising, IndiGrid has an available capital of ₹60-70 billion (~$719.52 – 839.51 million) at a leverage cap of 70%.

“This fundraising has helped us expand our unit holder base with more than 90% demand from long-term investors across insurance companies, pension funds, mutual funds, and domestic institutions to IndiGrid’s investor base,” said Harsh Shah, Chief Executive Officer, IndiGrid.

Axis Capital, Ambit, HSBC Securities and Capital Markets (India), and SBI Capital Markets served as Book Running Lead Managers for this placement. Cyril Amarchand Mangaldas and S&R Associates acted as issuer counsel and bankers counsel, respectively.

During the second quarter of FY24, IndiGrid reported a profit of ₹32.3 billion  ($388.91 million). This is a 69.1% reduction year-over-year from ₹107.4 billion ($1.29 billion.)

BES Rajdhani Power awarded IndiGrid2 and Amperehour Solar Technology the contract to design, supply, test, install, commission, operate, and maintain a 20 MW/40 MW battery energy storage system in Delhi.