IndiGrid Infrastructure Trust has completed a significant acquisition in the power transmission sector, announcing the successful purchase of 100% stake in Gadag Transmission Limited (GTL) on March 10, 2026. The transaction represents a strategic expansion of IndiGrid's transmission asset portfolio through a substantial cash deal.

Transaction Overview

The acquisition was executed under the Share Purchase Agreement signed on December 02, 2025, between IndiGrid Infrastructure Trust and the sellers - ReNew Transmission Ventures Private Limited (RTVPL) and KNI India AS (KNI). The transaction complies with Regulation 23(6)(a) of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

Target Company Profile

Gadag Transmission Limited operates as a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project strategically located in Karnataka. The company was incorporated on June 02, 2020, and entered into a Transmission Service Agreement with long-term transmission customers on December 10, 2021.

Key Asset Specifications

Financial Structure

The acquisition involves an enterprise value not exceeding ₹372 crores, excluding working capital adjustments as specified in the definitive documents. Additionally, the agreement includes an earn-out mechanism related to Change-In-Law (CIL), availability, and other bilateral billing aspects, payable to RTVPL and KNI upon realization of such payments.

GTL's revenue projection stands at approximately ₹36.43 crores for FY26, aligned with the Tariff Adoption Order, providing visibility into the asset's revenue generation potential.

Strategic Rationale

The acquisition aligns with IndiGrid's investment strategy as outlined in the Trust Deed, focusing on owning transmission assets with long-term contracts to ensure stable distributions to unitholders. The transaction does not fall under related party transactions, maintaining arm's length dealing principles.

The governmental, regulatory, and other required approvals have been obtained for the acquisition in accordance with the Transmission Service Agreement and definitive agreement terms, ensuring compliance with all necessary regulatory frameworks.

IndiGrid Infrastructure Trust has received a credit rating update from India Ratings and Research Private Limited, with the rating agency confirming no changes from the previous assessment. The Infrastructure Investment Trust notified stock exchanges on March 10, 2026, regarding the rating update dated March 9, 2026.

Rating Status Remains Stable

India Ratings and Research Private Limited has updated the bank-wise facility ratings for IndiGrid Infrastructure Trust, maintaining the same rating levels as the previous assessment issued on June 03, 2025. The rating agency has published the updated details on their website, providing stakeholders with access to the comprehensive rating rationale.

Regulatory Compliance and Disclosure

The Infrastructure Investment Trust has fulfilled its regulatory obligations by promptly informing both BSE Limited and National Stock Exchange of India Limited about the rating update. The disclosure was made pursuant to Regulation 20, 23 of the SEBI (Infrastructure Investment Trusts) Regulations, 2014, along with compliance to relevant SEBI Master Circulars.

The notification was signed by Urmil Shah, Company Secretary & Compliance Officer, representing IndiGrid Investment Managers Limited in their capacity as the Investment Manager of IndiGrid Infrastructure Trust. The digital signature was authenticated on March 10, 2026, ensuring proper documentation and regulatory compliance.

Stakeholder Information Access

Investors and stakeholders can access the detailed rating rationale through India Ratings and Research's official website. The rating agency has made the comprehensive analysis available online, providing transparency regarding the assessment methodology and factors considered in maintaining the existing rating levels.

The trust has also copied the rating update information to its trustee services providers, including Axis Trustee Services Limited and IDBI Trusteeship Services Limited, ensuring all relevant parties are informed about the rating status.