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.

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.