IndiGrid agrees purchase of KKR-backed renewables platform Virescent
- Indian power-sector framework trust (InvIT) India Grid Trust (BOM:540565), or IndiGrid, has actually lately inked an INR-40-billion (USD 483m/EUR 447m) bargain to buy Virescent Renewable Energy Trust (VRET), a KKR-backed local renewable energy platform with 538 MWp of solar assets.
Establish by the United States personal equity firm in 2020, VRET is called India's first and only renewable energy InvIT. Its portfolio consists of 16 operational solar plants across 7 states, the biggest of which is a 130-MW/169-MWp asset situated in the state of Maharashtra.
The purchase will enhance IndiGrid's assets under management (AUM) to INR 269 billion and also its total solar assets portfolio to 674 MWp. The deal is also expected to include INR 2 billion yearly to the firm's internet distributable capital (NDCF).
"Upon consummation, this will certainly be a spots acquisition for IndiGrid as well as will offer an incentive in the renewable space, augment asset management capability as well as lead to considerable accretion," IndiGrid's CEO Harsh Shah claimed in a statement previously this month.
IndiGrid, which itself counts KKR as a shareholder, will certainly take control of Mumbai-based VRET together with its investment manager and also project manager, in one or more tranches. The all-cash deal, whose worth is in enterprise terms, rests on investor and governing authorizations.
Media supposition about VRET being up for sale emerged in early 2023. More than 10 major energy field gamers were said to have aligned for the business. The listing of purported suitors consisted of Adani Green Energy Ltd, Torrent Power, exclusive equity company Actis, oil and gas giant Covering plc, Multiply Team PJSC and also Jindal Steel as well as Power, according to local media reports.
