IndiGrid Infrastructure Trust , managed by IndiGrid Investment Managers Limited (IIML), has announced a significant capital raising initiative, demonstrating its commitment to growth and expansion in the infrastructure sector.

Capital Raising Plan

The Board of Directors of IIML has approved an enabling resolution to raise capital up to INR 1,500.00 crore. This strategic move aims to bolster IndiGrid's financial position and support its future endeavors. The capital raising plan includes various funding mechanisms, providing flexibility in its execution:

It's important to note that the total capital raised will not exceed INR 1,500.00 crore, regardless of the combination of methods used.

Regulatory Approvals and Unitholder Consent

The implementation of this capital raising plan is subject to several key steps:

1. Obtaining necessary statutory and regulatory approvals
2. Seeking Unitholders' approval through either:
   • An Extra-ordinary General Meeting
   • Postal Ballot

These measures ensure compliance with regulatory requirements and maintain transparency with IndiGrid's unitholders.

Board Meeting Details

The decision was made during a board meeting held on October 10. Key details of the meeting include:

• Commencement Time: 02:45 PM
• Conclusion Time: 03:50 PM

About IndiGrid Infrastructure Trust

IndiGrid Infrastructure Trust, managed by IndiGrid Investment Managers Limited, is a prominent player in the infrastructure investment trust sector. The substantial size of the proposed capital raise suggests that IndiGrid has significant growth plans or potential acquisition targets in the infrastructure space.

This capital raising initiative by IndiGrid demonstrates the trust's proactive approach to securing funds for future growth opportunities in the dynamic infrastructure sector. Investors and market watchers will likely keep a close eye on how IndiGrid utilizes these funds to enhance its portfolio and deliver value to its unitholders.

IndiGrid Infrastructure Trust , India's first power sector Infrastructure Investment Trust (InvIT), has announced a significant move to bolster its energy storage portfolio. The company has executed a definitive agreement to acquire a 187.5 MW/750 MWh Battery Energy Storage System (BESS) project in Uttar Pradesh from Enerica ReGrid Infra Private Limited.

Key Details of the Acquisition

• The acquisition involves purchasing 100% shareholding of Enerica Infra 3 Private Limited, which holds a Battery Energy Storage Purchase Agreement (BESPA) with SJVN Limited.
• The enterprise value for the acquisition is capped at INR 7,056.00 million, subject to closing adjustments.
• The project is expected to generate annual revenue of approximately INR 810.00 million.
• It operates under a 15-year concession period following a Build Own Operate (BOO) model.

Strategic Implications

This acquisition marks a significant step in IndiGrid's expansion into the energy storage sector, aligning with India's push towards grid stability and renewable energy integration. The BESS project's substantial capacity of 750 MWh positions IndiGrid as a key player in addressing the intermittency challenges associated with renewable energy sources.

Timing and Completion

The acquisition is set to be completed one year after the project achieves its Commercial Operation Date (COD). This structure allows IndiGrid to mitigate development risks while securing a strategic asset in the rapidly evolving energy storage market.

Related Party Transaction

It's worth noting that the seller, Enerica ReGrid Infra Private Limited, is considered a related party due to having a common director with IndiGrid's Investment Manager. However, IndiGrid has emphasized that the transaction will be conducted at arm's length pricing, ensuring compliance with relevant regulations.

Market Impact

This move by IndiGrid demonstrates the growing importance of energy storage in India's power sector. As the country aims to integrate higher percentages of renewable energy into its grid, BESS projects like this one will play a crucial role in maintaining grid stability and reliability.

The acquisition also reflects IndiGrid's strategy to diversify its asset portfolio beyond traditional transmission infrastructure, positioning itself as a comprehensive player in India's evolving energy landscape.

As the energy transition accelerates, IndiGrid's investment in large-scale battery storage showcases the trust's commitment to supporting India's clean energy goals while potentially opening up new revenue streams in the rapidly growing energy storage market.