India Grid Trust (IndiGrid), a power infrastructure investment trust, has launched a preferential issue of shares priced at ₹136.43 (~$1.62) to raise approximately ₹6.95 billion (~$82.7 million).

This move follows the successful conclusion of an Offer-for-Sale managed by its sponsor, KKR, which saw substantial interest from existing and new long-term investors.

The OFS, aimed at reducing KKR’s stake from 21.17% to 3.85%, was oversubscribed nearly two times, reflecting strong investor confidence. This attracted participation from prominent institutional investors such as L&T, HSBC Global Asset Management, SBI Life Insurance, and Aditya Birla Mutual Fund.

Alberta Investment Management Corporation (AIMCo) of Canada and HDFC Life have committed to investing ₹5.67 billion (~$67.5 million) and ₹1 billion (~$11.9 million), respectively.

Harsh Shah, Chief Executive Officer and Whole Time Director of IndiGrid, said, “It is a heartening moment for us to witness such significant confidence from all classes of investors, and we are pleased to welcome multiple marquee investors on the back of the OFS. We are also delighted to welcome AIMCo and HDFC Life, through a preferential issue, in our roster of reputed investors.”

Ahmed Mubashir, Managing Director, Head of EMEA and India, Infrastructure,  AIMCo, said, “The growth and decarbonization of India’s electricity sector presents itself as an exciting opportunity for infrastructure investors. IndiGrid is a well-managed, transmission focused platform providing its unit holders exposure to stable, contracted, long-term cash flows. This aligns well with our infrastructure strategy in India. AIMCo is also impressed by IndiGrid‘s track record of enabling accretive growth and are excited to be further supporting and enabling that journey with this equity injection.”

IndiGrid manages 41 power projects, including 49 transmission lines and 15 substations. It also has a solar generation capacity and assets under management exceeding ₹293 billion (~$3.5 billion).

KKR owns 100% of IndiGrid Investment Managers, the trust’s investment manager.

IndiGrid recently operationalized its first greenfield project, Kallam Transmission, in Beed, Maharashtra. The project will evacuate 1 GW of power from renewable energy projects in the state’s Dharashiv area.

In March, IndiGrid won an auction to set up projects of 250 MW/500 MWh standalone battery energy storage systems in Gujarat. The company secured a 180 MW/360 MWh capacity at a tariff of ₹449,996 (~$5,436)/MW/month.

In January, IndiGrid signed a share purchase agreement to acquire ReNew’s 300 MW solar project in Rajasthan at an enterprise valuation of ₹15.5 billion (~$186.5 million).