IndiGrid successfully raises Rs 670 crore via institutional placement

India's pioneering publicly listed power sector Infrastructure Investment Trust (InvIT), IndiGrid, has successfully secured Rs 670 crore through an institutional placement, marking another significant financial milestone for the company.

The infrastructure investment trust utilised the institutional placement process outlined by SEBI, and the initiative, launched on December 5, 2023, garnered robust interest from both existing and new Indian and global institutional investors, according to a company statement.

This achievement follows IndiGrid's successful preferential issue in September 2023, which raised over Rs 400 crore. With the recently concluded institutional placement, the company has successfully accumulated equity funds amounting to Rs 1,070 crore in the fiscal year 2023-24.

Harsh Shah, Chief Executive Officer of IndiGrid, highlighted the positive impact of the fundraising on the company's unit holder base. "This fundraise has helped us expand our unit holder base with more than 90 per cent demand from long-term investors across insurance companies, pension funds, mutual funds, and domestic institutions," Shah stated in the release.

The generated proceeds from both the institutional placement and the preferential allotment will be directed towards reducing debt levels. The statement emphasised that this capital raise has enabled IndiGrid to establish a significant debt headroom of approximately Rs 6,000-7,000 crore, considering the leverage cap of 70 per cent.

The board of directors of IndiGrid Investment Managers Ltd, acting as the investment manager of IndiGrid, approved the issuance and allotment of 5.27 crore new units through the Institutional Placement to 11 eligible investors on December 8, 2023.

More than 90 per cent of the incremental units were allocated to insurance companies, mutual funds, pension funds, and domestic institutions, reflecting the strong demand from long-term investors.

The Institutional Placement was facilitated with the support of leading financial institutions, including Axis Capital Limited, Ambit Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Ltd, who served as Book Running Lead Managers for the placement.

Additionally, legal counsel was provided by Cyril Amarchand Mangaldas (CAM) and S&R Associates, acting as issuer counsel and bankers counsel, respectively. The successful completion of this funding round underscores IndiGrid's position as a key player in India's infrastructure investment landscape.

(With PTI inputs.)