IndiGrid Infrastructure Trust has initiated a qualified institutional placement (QIP) on Tuesday, January 20, to raise capital for its expansion plans. The infrastructure investment trust is targeting funds of up to ₹1,500 crore through this institutional share sale.

QIP Structure and Pricing Details

The qualified institutional placement has been structured with flexibility to accommodate market conditions and investor demand:

The floor price of ₹167.42 per unit represents a premium compared to Monday's closing price, according to IndiGrid's exchange filing. This pricing strategy reflects confidence in the company's growth prospects and asset quality.

Lock-up Provisions for Key Stakeholders

The QIP includes specific lock-up arrangements for different categories of stakeholders to ensure stability post-allotment:

• Investment Manager and Trustee: 90-day lock-up period from allotment
• Sponsor: 60-day lock-up period from allotment

These provisions are designed to demonstrate commitment from key stakeholders and provide confidence to institutional investors participating in the placement.

Recent Strategic Acquisition

Last month, IndiGrid Infrastructure Trust announced the acquisition of Gadag Transmission Ltd for an enterprise value of approximately ₹372 crore, excluding net working capital and cash adjustments. This acquisition represents a significant expansion of the company's transmission infrastructure portfolio.

Gadag Transmission operates as an inter-state transmission system project and forms the first phase of transmission infrastructure planned to evacuate nearly 2,500 MW of solar power from the Gadag Solar Energy Zone in Karnataka.

Financial Impact and Funding Strategy

The acquisition is being funded through a diversified approach combining multiple sources:

• Equity funding
• Internal accruals
• Debt financing

Post-acquisition, IndiGrid's net debt to assets under management (AUM) ratio will reach 60.5%, which management indicates leaves adequate headroom for future growth opportunities. This conservative leverage approach maintains financial flexibility while supporting expansion plans.

Market Performance

IndiGrid Infrastructure Trust shares concluded the previous trading session with a decline of 0.9%, closing at ₹164.11 per unit. Despite the recent session's performance, the stock has demonstrated strong annual performance with gains of 13.3% over the past year, reflecting investor confidence in the infrastructure investment trust's business model and growth strategy.

IndiGrid Infrastructure Trust , through its investment manager IndiGrid Investment Managers Limited, has announced plans to raise additional capital of up to INR 1000 crore. This move comes on top of the previously approved INR 1500 crore limit set in October 2025, signaling an expansion strategy for the infrastructure investment trust.

Key Highlights

• The Board of Directors of IndiGrid Investment Managers Limited approved an enabling resolution for the additional capital raise.
• The total capital raising limit now stands at INR 2500 crore, combining the new approval with the previous limit.
• The company plans to explore various modes of capital raising, including rights issue, preferential issue, and institutional placement.
• The capital raise is subject to necessary approvals from statutory, regulatory, and other authorities, as well as unitholder consent.

Financial Context

To understand the significance of this capital raising plan, let's look at IndiGrid's recent financial position:

The substantial year-on-year increases across these key financial metrics suggest that IndiGrid has been on a growth trajectory. The proposed capital raise of INR 1000 crore, in addition to the previously approved INR 1500 crore, could further strengthen the company's financial position and support its expansion plans.

Potential Implications

1. Expanded Investment Capacity: With the increased capital, IndiGrid may be able to pursue larger infrastructure projects or acquisitions, potentially enhancing its portfolio and revenue streams.

2. Improved Liquidity: The additional funds could provide IndiGrid with greater financial flexibility, allowing it to optimize its capital structure and potentially reduce borrowing costs.

3. Market Confidence: The Board's decision to seek additional capital may be viewed as a sign of confidence in the company's growth prospects and its ability to identify profitable investment opportunities in the infrastructure sector.

4. Unitholder Approval: The company will need to obtain unitholder approval for this capital raise, which will be a crucial next step in the process.

As IndiGrid moves forward with its capital raising plans, investors and market watchers will be keen to see how the company deploys these funds and the impact on its future growth and performance in the infrastructure investment space.

Note: All financial figures are based on the latest available data as of March 2025.