IndiGrid InvIT raises Rs. 670 crore via institutional placement
What's the story
IndiGrid, the first power sector Infrastructure Investment Trust (InvIT) to be publicly listed in India, has successfully raised Rs. 670 crore using an institutional placement procedure, as laid out by SEBI. Launched this month on December 5, the IP process saw huge demand from both existing and new Indian and international institutional investors. This follows IndiGrid's raising of over Rs. 400 crore in a preferential issue in September 2023, bringing total equity funds raised in FY2023-24 to Rs. 1,070 crore.
Details
Funds to be used for lowering debt
Harsh Shah, CEO of IndiGrid, said the fundraising has expanded the unit holder base, with over 90% demand from long-term investors such as insurance companies, pension funds, mutual funds, and domestic institutions. "With the capital raise, IndiGrid has created a significant debt headroom of around Rs. 6,000-7,000 crore at the leverage cap of 70%," he added. The proceeds from the institutional placement and the preferential allotment will be used to reduce debt.
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Details of the institutional placement
Yesterday, IndiGrid's board of directors approved the issuance as well as allotment of 5.27 crore new units through the institutional placement to 11 investors, with over 90% of incremental units being issued. Axis Capital Limited, SBI Capital Markets Ltd, Ambit Private Limited, and HSBC Securities and Capital Markets (India) served as Book Running Lead Managers for this placement. Cyril Amarchand Mangaldas and S&R Associates served as issuer counsel and bankers' counsel, respectively.