IndiGrid Infrastructure Trust , a leading infrastructure investment trust, has successfully raised INR 1,900 crore through the issuance of non-convertible debt securities. This significant financial move underscores the trust's commitment to long-term growth and financial stability in the infrastructure sector.

Key Details of the Debt Securities

The Allotment Committee of IndiGrid Investment Managers Limited, acting as the Investment Manager for IndiGrid Infrastructure Trust, approved the allotment of 190,000 non-convertible debt securities on July 31, 2025. These securities, designated as Series AH, come with the following features:

• Face Value: INR 1,00,000 per security
• Tenure: 22 years
• Coupon Rate: 7.3450% per annum, payable quarterly
• Redemption Date: July 31, 2047
• Credit Rating: AAA by both CRISIL and ICRA, indicating the highest level of creditworthiness

Partial Payment Structure

The Series AH debt securities are structured as partly paid-up instruments. While the total face value is INR 1,00,000 per security, the initial paid-up value is INR 31,500 per security. This structure allows for a total initial raise of INR 598.50 crore, with the potential for additional capital infusion in the future.

Listing and Security

IndiGrid plans to list these debt securities on the Bombay Stock Exchange (BSE), enhancing their liquidity and tradability. The securities are categorized as senior and secured, providing an additional layer of comfort to investors.

Strategic Financial Management

This debt issuance is part of IndiGrid's broader financial strategy. As per the latest available data from June 30, 2025, IndiGrid has been actively managing its debt portfolio:

The trust has confirmed that all funds raised have been utilized in accordance with the stated objectives, primarily for refinancing existing loans, advancing loans to SPVs for project development, and other infrastructure-related purposes.

Market Implications

The successful raising of INR 1,900 crore through long-term debt securities demonstrates strong investor confidence in IndiGrid Infrastructure Trust. The AAA credit rating and the trust's track record in fund utilization are likely to be viewed positively by the market.

This substantial capital raise positions IndiGrid to pursue further growth opportunities in the infrastructure sector, potentially leading to enhanced returns for unit holders and contributing to India's infrastructure development goals.

As the infrastructure sector continues to play a crucial role in India's economic growth, financial moves of this magnitude by established players like IndiGrid are likely to have ripple effects across the industry, potentially influencing funding patterns and investment strategies in the sector.

IndiGrid Infrastructure Trust (IndiGrid) has reported a stable performance for the first quarter of fiscal year 2026, maintaining its distribution per unit (DPU) guidance of INR16 for the year despite facing some operational challenges.

Financial Highlights

IndiGrid reported a flat revenue growth of 0.6% year-on-year, reaching INR839.80 crore for the quarter ended June 30, 2025. However, the company's EBITDA declined by 8% to INR704.00 crore, primarily due to a generator-related issue at a solar thermal asset in Rajasthan and a one-time investment management fee of INR12.00 crore related to recent acquisitions.

Despite the challenges, IndiGrid maintained its quarterly distribution per unit at INR4.00, representing a 6.7% increase compared to the same period last year. This distribution is in line with the company's annual guidance of INR16.00 per unit.

Operational Performance

The company's weighted average quarterly transmission availability stood at 99.04%, while solar CUF was at 17.7%. The lower solar CUF was attributed to the generator-related issue at the Godawari Green Power Project in Rajasthan, which has since been resolved.

Collections for the quarter were robust, with transmission assets at 93% and solar assets at 111%. The receivable days for transmission assets improved to 41 days from 51 days in the previous quarter.

Recent Acquisitions and Growth

IndiGrid acquired two significant assets during the quarter:

1. ReNew Surya Aayan Private Limited (RSAPL) - a 300-megawatt solar project
2. Koppal-Narendra Transmission Limited - a 276 circuit kilometer transmission project

These acquisitions, valued at a total enterprise value of approximately INR2,108.00 crore, are expected to contribute significantly to IndiGrid's asset under management (AUM) and EBITDA.

Future Outlook

IndiGrid's sponsored entity, EnerGrid, won its first battery energy storage project with a capacity of 187.5 megawatt / 750-megawatt hour. This project, featuring a 4-hour storage cycle, marks IndiGrid's entry into the energy storage sector, aligning with India's energy transition goals.

The company's net debt to AUM ratio stood at 61.2%, providing headroom for future acquisitions of approximately INR6,500.00 crore without equity dilution.

Management Commentary

Harsh Shah, Managing Director of IndiGrid, commented on the results, stating, "We are doing our best to ensure stable, predictable returns. We see the outlook for this sector and our business improving massively due to the significant investments in the sector. With favorable cost of capital and numerous opportunities on the horizon, we anticipate good times ahead for IndiGrid unitholders."

IndiGrid continues to focus on growing its portfolio while maintaining stable operations to ensure predictable distributions. The company remains committed to its DPU guidance of INR16.00 for FY26, balancing growth with consistent returns for its investors.