Power transmission and renewable energy company IndiGrid has executed definitive agreements to acquire Gadag Transmission (GLT), an interstate transmission system (ISTS) project in Karnataka, for ₹3.72 billion (~$41.36 million).

The project is jointly owned by ReNew Transmission Ventures, which holds a 51% stake, and KNI India AS, a joint venture between Norway’s Norfund and KLP, which holds a 49% stake.

GLT is a build-own-operate-maintain ISTS project. It is the first phase of the transmission program planned to evacuate approximately 2,500 MW of solar energy from the Gadag Solar Energy Zone. The GLT project includes roughly 187 ckm of transmission lines and a 1,000 MVA substation, with scope for further augmentation.

After the transaction, IndiGrid will acquire the full shareholding and management control of GLT. IndiGrid said the acquisition will be financed through a combination of debt, equity, and internal accruals. The net debt will include net debt/assets under management (AUM) of approximately 60.5% after the acquisition.

This transaction would exclude any net working capital and cash adjustments. It would also include an earn-out related to change-in-law, availability, and bilateral billing, payable to the settlers if and when the payment is received.

Indigrid is a wholly owned arm of investment firm KKR. It owns 43 power projects, including 53 transmission lines totaling 9,336 ckm. It also has 16 substations with a transformation capacity of approximately 25,050 MVA, a solar generation capacity of roughly 1.5 GW, and a battery energy storage system (BESS) capacity of about 450 MW/900 MWh.

The company’s assets under management stand at over ₹325 billion ($3.6 billion).

Recently, IndiGrid Investment Managers (IIML), the investment management arm of IndiGrid, approved a board resolution to raise ₹15 billion (~$169 million). The fundraise may be carried out through a rights issue to eligible unitholders, a preferential issue, an institutional placement, or any other mode permitted by law.

In June this year, IndiGrid announced it would acquire ReNew Surya Aayan and Koppal–Narendra Transmission for a total enterprise value of ₹21.08 billion (~$245.12 million). IndiGrid will acquire 100% shareholding and management control of both companies.