Anzen India Energy Yield Plus Trust has submitted a comprehensive valuation report to SEBI for its proposed acquisition of Kudgi Transmission Limited, following the execution of a Securities Purchase Agreement on March 17, 2026. The transaction, valued at up to ₹11,000 million, represents a strategic expansion of the trust's infrastructure portfolio in the power transmission sector.

Regulatory Compliance and Valuation Process

The trust submitted the valuation report on March 18, 2026, in compliance with Regulation 21(6) of the SEBI Infrastructure Investment Trusts Regulations, 2014. The Board of Directors of EAAA Real Assets Managers Limited, acting as the Investment Manager, formally acknowledged the valuation report prepared by registered valuer CA Jayeshkumar Shah (IBBI Registration Number: IBBI/RV/07/2020/13066).

Transaction Structure and Asset Details

The acquisition involves purchasing 100% shareholding and other securities of Kudgi Transmission Limited from three seller entities: Infrastructure Yield Plus II, Infrastructure Yield Plus IIA, and India Infrastructure Yield Plus II. The deal structure includes both unit swaps of Anzen and cash consideration, with the final amount subject to closing adjustments.

Financial Performance and Revenue Model

Kudgi Transmission Limited operates on a build, own, operate and maintain basis with consistent revenue generation. The company demonstrates stable financial performance with annual revenue of ₹1,962.90 million as per the Transmission Service Agreement, plus additional incentives linked to availability performance.

Valuation Methodology and Key Assumptions

The registered valuer employed the Income Approach using the Discounted Cash Flow method with a Free Cash Flow to Firm model. The valuation incorporates several key assumptions including transmission revenue based on the Transmission Service Agreement, operational efficiency maintaining above 98% availability for incentive eligibility, and terminal value considerations for the post-concession period.

The valuation process considered the company's operational track record, regulatory framework, and long-term revenue visibility under the transmission service agreement extending until 2051. The assessment also factored in ongoing litigation matters, which were deemed to have low to medium risk with no material impact expected on the valuation.

Related Party Transaction and Governance

The acquisition qualifies as a related party transaction since the seller entities are Alternative Investment Funds managed by EAAA India Alternatives Limited, which is the holding company of Anzen's Investment Manager. To ensure proper governance, Mr. Subahoo Chordia abstained from participating in board discussions regarding this matter due to his dual role as Director of Anzen's Investment Manager and member of the Key Investment Team of the seller AIFs.

Completion of the acquisition remains contingent upon securing unitholder consent and obtaining other relevant regulatory approvals. The transaction aligns with Anzen's investment strategy of focusing on operational, high-quality infrastructure assets with long-term tariff contracts to ensure stable distributions to unitholders.

Anzen India Energy Yield Plus Trust has achieved a significant milestone by tripling its assets under management (AUM) to ₹6,552 crore through a strategic preferential issue and major acquisition. The diversified energy InvIT completed this transformation in Q4FY26, marking substantial growth since its listing in November 2022 with an initial AUM of ₹2,300 crore.

Preferential Issue Details

The trust successfully raised ₹696.44 crore through a preferential issue to a diverse group of investors, including existing unitholders. The capital raising involved the issuance of 5,95,25,000 units at ₹117 per unit, demonstrating strong investor confidence in Anzen's fundamentals and growth trajectory.

Strategic Asset Acquisition

The proceeds from the preferential issue, combined with external debt, were utilized to acquire 12 renewable solar energy assets from Edelweiss Infrastructure Yield Plus and its affiliates. This acquisition represents a 74% stake in assets with an enterprise value of ₹2,520 crore, significantly expanding Anzen's renewable energy portfolio.

Portfolio Expansion and Current Holdings

Following these acquisitions, Anzen's portfolio has expanded to 15 energy assets across transmission and renewable solar segments. The trust's current portfolio comprises 2 transmission assets and 13 renewable solar assets with a combined generation capacity of 1.2 GWp. This diversified approach aligns with Anzen's vision of becoming a trusted investment platform focused on creating long-term value for unitholders.

About the Trust and Management

Anzen India Energy Yield Plus Trust operates as a privately listed, diversified, and growth-oriented energy InvIT. SEPL Energy Private Limited, a portfolio company of Edelweiss Infrastructure Yield Plus, serves as the sponsor. The investment management is handled by EAAA Real Assets Managers Limited, a wholly owned subsidiary of EAAA India Alternatives Limited.

EAAA India Alternatives Limited, formerly known as Edelweiss Alternative Asset Advisors Limited, manages ₹68,175 crore in AUM as of December 31, 2025. The platform operates as one of India's leading multi-strategy asset management alternatives with over 15 years of experience in managing long-term patient capital across Real Assets and Private Credit business verticals.