About
India Grid Trust
India Grid Trust ('the Trust' or 'IndiGrid') is an irrevocable trust settled by Sterlite Power Grid Ventures Limited (the 'Sponsor') on October 21, 2016 pursuant to the Trust Deed under the provisions of the Indian Trusts Act, 1882 and registered with Securities Exchange Board of India ('SEBI') under the SEBI (Infrastructure Investment Trust) Regulations, 2014 as an Infrastructure Investment Trust on November 28, 2016 having registration number IN/InvIT/16-17/0005. The Trustee of IndiGrid is Axis Trustee Services Limited (the 'Trustee'). The Investment manager for IndiGrid is Sterlite Investment Managers Limited (the 'Investment Manager' or the 'Management').
The objectives of IndiGrid are to undertake activities as an infrastructure investment trust in accordance with the provisions of the InvIT Regulations and the Trust Deed. The principal activity of IndiGrid is to own and invest in power transmission assets in India with the objective of producing stable and sustainable distributions to unitholders.
India Grid Trust ('IndiGrid') is India's first infrastructure investment trust ('InvIT') in the power sector. It was created to acquire operating power transmission assets and got listed on the Indian stock exchanges on 6 June 2017.
SIML through its letter dated October 26, 2017 informed to the stock exchanges that the Board of Directors of Investment Manager has approved issuance 1,35,99,200 units by India Grid Trust to the Project Manager and considered October 26, 2017 as relevant date.
Further, the Board of Directors of SIML acting in the capacity of Investment Manager of IndiGrid, considered the certificate issued by Statutory Auditors thereby confirming the issue price of INR 100 per unit calculated as per Regulation 76 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (the 'ICDR Regulations') as on the relevant date viz. October 26, 2017 and has allotted 1,35,99,200 units to the Project Manager in another Board Meeting held after obtaining aforesaid certificate on October 26, 2017.
IndiGrid is sponsored by Sterlite Power Grid Ventures Limited ('Sponsor'), one of India's leading private power transmission companies with proven credentials in bidding, designing, financing, constructing and maintaining assets across multiple geographies. The Sponsor has played and continues to play a critical role in nurturing IndiGrid to fulfil its aspiration of becoming the most admired yield vehicle in Asia.
As on 31 March 2018,trust's asset count of 13 transmission lines and 2 substations across 8 states of India. The residual contract life across the 5 Project SPVs is over 33 years. IndiGrid is AAA rated and has an AUM of Rs 52 billion.
During the year ended March 31, 2018, IndiGrid has acquired the following projects from the Sponsor which are transmission infrastructure projects developed on Build Own Operate and Maintain ('BOOM') basis: 1. Bhopal Dhule Transmission Limited 2. Jabalpur Transmission Company Limited 3. RAPP Transmission Company Limited 4. Purulia & Kharagpur Transmission Company Limited 5. Maheshwaram Transmission Limited.
These SPVs have executed Transmission Services Agreements ('TSAs') with Long term transmission customers under which the SPVs have to maintain the transmission infrastructure for 35 years post commissioning.
As on 31 March 2019,trust's asset count of 16 transmission lines and 4 substations across 8 states of India.
The trust raised Rs 25.1 Billion in May 2019 through Preferential Issue of which KKR & GIC subscribed Rs 20.6 Billion.
During the FY2019,the trust signed definitive agreements to acquire Rs 115 Billion worth transmission assets from Sterlite Power.
During the year ended March 31, 2020, the Trust raised Rs 25,140.48 million of primary capital through a qualified institutional placement of units. The Trust issued and allotted 299,683,881 units at a price of Rs 83.89 per unit as per the placement agreement dated 04 May 2019.
During the year 2019-20, the trust completed three acquisitions with assets worth more than Rs 60 billion. While NRSS XXIX Transmission Ltd (NTL) and Odisha Generation Phase II Transmission Ltd (OGPTL) were acquired in H1 of the financial year.
As on 31 March 2020,trust's asset count of 20 transmission lines and 4 substations across 12 states and one union territory.
India Grid Trust
Chairman Speech
As we complete another glorious year of driving superior returns, we
are deeply grateful to our unitholders, employees, regulators, and all stakeholders for
their unwavering belief in the IndiGrid story and their constant support in our journey of
growth. At IndiGrid, we have successfully stayed on course to focus on consistent value
creation and build a superior and sustainable yield platform.
Dear Unitholders,
It gives me immense pleasure to introduce this year's Annual Report,
which vividly represents our 'Purpose, Potential, and Growth Outlook' - which guide our
decisions, both strategic and operational. I express my gratitude for your steadfast
support and am delighted to announce the successful conclusion of yet another remarkable
and landmark year in FY 2022-23.
FY2022-23 - An Acquisitive Year
It was an acquisitive year for IndiGrid. We acquired 100% stake in
Raichur Sholapur Transmission Company Private Limited (RSTCPL) at an enterprise valuation
of 2,500 Million and Khargone Transmission Limited (KhTL) at an enterprise valuation of
15,000 Million. These two accretive acquisitions coupled with acquisitions consummated in
mid-FY2021-22 generating full year impact in FY2022-23, resulted in IndiGrid exceeding its
DPU guidance for the year - delivering 13.35 per unit versus the guided 13.20 per unit - a
growth of 4.5% on a run-rate basis.
Apart from the above two acquisitions, IndiGrid signed a framework
agreement with G R Infra to acquire their currently under construction asset, Rajgarh
Transmission Limited, post its commercial operationalisation, at an agreed upon enterprise
valuation.
A Landmark Deal
A landmark deal for IndiGrid this year is the acquisition of units of
Virescent Renewable Energy Trust (VRET) wherein we have signed the definitive documents
and are awaiting certain regulatory approvals. India's first and only renewable energy
infrastructure trust, VRET owns 16 operational solar energy assets across 7 states with a
combined capacity of 538 MWp and total Assets Under Management (AUM) of ~ INR 41,000
Million. We expect to complete the acquisition in Q2 FY 2024 VRET is a AAA-rated platform
and has a strong institutional holding with KKR as its sponsor and other marquee investors
like Alberta Investment Management Corporation (AIMCo), Utilico, and L&T as its
unitholders.
VRET comes with proven track record with all its assets having an
average operational tenure and average remaining tenure of ~7 years and ~18 years
respectively. Alongwith the assets, IndiGrid will also inherit the entire asset management
team of VRET with ~100 people. A complementary competence addition, this will help us
strengthen our capabilities in solar asset management while also ensuring operational
continuity for all the VRET assets.
The acquisition of VRET will increase the contribution of renewable
assets in IndiGrid portfolio to ~17% (on AUM basis) which is in-line with our strategy to
increase our exposure to the fast growing renewable sector albeit capping the contribution
of the sector to our AUM at 25%.
Sound Financial Performance
During the fiscal year, our Revenue from Operations and EBITDA recorded
a growth of of 5% and 4% respectively. Our NDCF for the full year was recorded at ~ INR
10,365 Million, a Y-o-Y growth of 10%. We increased our DPU guidance for the year
FY2023-24 to 13.8 per unit - a growth of 4.5% on a run-rate basis - on the back of
completed accretive acquisitions, a promising pipeline and improved operational efficiency
across assets.
As a result of our efforts, we ended the year with our asset portfolio
at 46 transmission lines, covering a total distance of ~8,468 circuit kilometres, 13
substations with ~17,550 MVA transformation capacity, and a solar power generation
capacity of 100 MW(AC), spread across 19 states and 1 Union Territory, and with an Asset
Under Management worth ~INR 228 Billion - a Y-o-Y growth of 8%.
IndiGrid's strong balance sheet, prudent asset management and
operational excellence align with our Company's strong growth and achievements. These
robust strengths, coupled with AAA-rated cash flows, 7.53% average cost of debt, 11.6
Billion cash balance, 78% fixed rate of borrowings 59.5% Net Debt/AUM and 2.16x
EBITDA/Interest have enabled us to maintain sustainable operations and deliver exceptional
risk-adjusted returns for our investors.
Improving our Operational Efficiency
Over the last 6 years, our efforts have consistently been dedicated to
improving the dependability of our network through several initiatives. For the full year
FY2022-23, we achieved an average availability of 99.7% across our assets. Our teams have
worked towards moving to a preventative culture from reactive one to ensure avoidance of
unexpected downtimes.
Technology has played an instrumental role in this endeavour and we
have invested in various digital tools to create a future-ready ecosystem. We successfully
deployed DigiGrid, our ambitious digital platform, across our asset portfolio. DigiGrid is
a state-of-the-art digital platform which enables our teams across levels to consistently
and remotely monitor the performance of each element of each asset across various
parameters to ensure adherence to highest standards of Quality, Health and Safety and
other operational requirements.
Further, to ensure quick resolution of unexpected faults, we have
trained an in-house team of 20 people and developed a QRT (Quick Reaction Team) under the
advanced Emergency Restoration System (ERS). Predictive weather intelligence platforms,
drone based inspections, and robotic module cleanings are some of the other initiatives
where we have made investments.
Focus on ESG Enhancement
Upliftment of our Environment, Social and Governance (ESG) practices
has been a key focus area for IndiGrid. Under each of the E, S and G umbrellas our teams
have identified target areas to which all our initiatives are aligned.
We have conscientiously worked towards improving our environmental
footprint by bringing in efficiencies in our energy and emission management and by better
managing our waster consumption and waste management. This year we commissioned our first
Battery Energy Storage System (BESS) project coupled with solar panels at our Dhule
substation for meeting the substation's auxiliary consumption requirement. While this
project helps IndiGrid reduce its dependence on non-renewable electricity sources, it is
also positioned well to act as a test bed for augmenting our capabilities to participate
in energy transition opportunities in solar and BESS space. As the operations at this
project stabilise, we look forward to replicating similar systems across our other
substations.
At IndiGrid, we are aware of the importance of enhancing the Diversity,
Equity and Inclusion (DE&I) quotient of our Company. We launched our DE&I policy
this year which focusses on our targets and edeavours in ensuring promotion of equitable
diversity across teams and leavels. As on end of FY2022-23, IndiGrid's gender diversity in
leadership and corporate roles stood at 27.3%. We have identified plans to increase our
diversity ratio further across corporate as well onsite teams.
With respect to our emmplyee health and safety initiatives, we achieved
the milestone of 2.5 Million Safe Manhours while ensuring Zero Fatality, Zero LTI (Loss
Time Injuries),
Zero FAC ( First Aid Cases) across all our employees. Our concentrated
approach towards ensuring defect-free transmission lines resulted in our Company reporting
one of the lowest trips per line at 0.18 during FY 2022-23.
InvITs offer a promising solution to the challenge of balancing
development and ownership, providing an appealing chance for developers and investors to
participate in India's infrastructure growth story. We extend our gratitude to the
Ministry of Finance, SEBI, and regulatory bodies for establishing a robust framework for
InvITs and REITs, which have been and will continue to be pivotal in expediting the growth
of the Indian infrastructure sector.
Within the transmission space, according to the National Infrastructure
Pipeline (NIP), the power transmission segment is estimated to require a capital
expenditure of ~INR 3,040 Billion between 2020 and 2025. The state utilities are expected
to spearhead the transmission segment with a projected capex of ~INR 1,900 Billion. The
NIP highlights the need to replicate successful models such as InvITs, REITs, and TOTs
across various infrastructure sectors, including power transmission, to facilitate
large-scale infrastructure expansion across the country.
We are of the opinion that the Indian energy sector is on the verge of
a major transformation, as the need for renewable energy alternatives emerges stronger
than ever, the demand patterns witness key shifts, electric mobility emerges as a
prominent trend, among other developments. Given the current state of affairs, we at
IndiGrid, foresee significant growth prospects and plan to expand our Assets Under
Management in the coming years by addition of value accretive projects.
As I conclude, I would like to express my sincere appreciation to our
valued unitholders for their steadfast dedication and partnership with IndiGrid. Thanks to
your unwavering support and invaluable advice, we have successfully weathered the highs
and lows of the past six years and, moving forward, we remain committed to strengthening
these relationships as we venture into our next growth trajectory phase.
I wish you the best of health and hope you and your family stay safe.
| Warm Regards, |
| Harsh Shah |
| Chief Executive Officer |
India Grid Trust
Company History
India Grid Trust ('the Trust' or 'IndiGrid') is an irrevocable trust settled by Sterlite Power Grid Ventures Limited (the 'Sponsor') on October 21, 2016 pursuant to the Trust Deed under the provisions of the Indian Trusts Act, 1882 and registered with Securities Exchange Board of India ('SEBI') under the SEBI (Infrastructure Investment Trust) Regulations, 2014 as an Infrastructure Investment Trust on November 28, 2016 having registration number IN/InvIT/16-17/0005. The Trustee of IndiGrid is Axis Trustee Services Limited (the 'Trustee'). The Investment manager for IndiGrid is Sterlite Investment Managers Limited (the 'Investment Manager' or the 'Management').
The objectives of IndiGrid are to undertake activities as an infrastructure investment trust in accordance with the provisions of the InvIT Regulations and the Trust Deed. The principal activity of IndiGrid is to own and invest in power transmission assets in India with the objective of producing stable and sustainable distributions to unitholders.
India Grid Trust ('IndiGrid') is India's first infrastructure investment trust ('InvIT') in the power sector. It was created to acquire operating power transmission assets and got listed on the Indian stock exchanges on 6 June 2017.
SIML through its letter dated October 26, 2017 informed to the stock exchanges that the Board of Directors of Investment Manager has approved issuance 1,35,99,200 units by India Grid Trust to the Project Manager and considered October 26, 2017 as relevant date.
Further, the Board of Directors of SIML acting in the capacity of Investment Manager of IndiGrid, considered the certificate issued by Statutory Auditors thereby confirming the issue price of INR 100 per unit calculated as per Regulation 76 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (the 'ICDR Regulations') as on the relevant date viz. October 26, 2017 and has allotted 1,35,99,200 units to the Project Manager in another Board Meeting held after obtaining aforesaid certificate on October 26, 2017.
IndiGrid is sponsored by Sterlite Power Grid Ventures Limited ('Sponsor'), one of India's leading private power transmission companies with proven credentials in bidding, designing, financing, constructing and maintaining assets across multiple geographies. The Sponsor has played and continues to play a critical role in nurturing IndiGrid to fulfil its aspiration of becoming the most admired yield vehicle in Asia.
As on 31 March 2018,trust's asset count of 13 transmission lines and 2 substations across 8 states of India. The residual contract life across the 5 Project SPVs is over 33 years. IndiGrid is AAA rated and has an AUM of Rs 52 billion.
During the year ended March 31, 2018, IndiGrid has acquired the following projects from the Sponsor which are transmission infrastructure projects developed on Build Own Operate and Maintain ('BOOM') basis: 1. Bhopal Dhule Transmission Limited 2. Jabalpur Transmission Company Limited 3. RAPP Transmission Company Limited 4. Purulia & Kharagpur Transmission Company Limited 5. Maheshwaram Transmission Limited.
These SPVs have executed Transmission Services Agreements ('TSAs') with Long term transmission customers under which the SPVs have to maintain the transmission infrastructure for 35 years post commissioning.
As on 31 March 2019,trust's asset count of 16 transmission lines and 4 substations across 8 states of India.
The trust raised Rs 25.1 Billion in May 2019 through Preferential Issue of which KKR & GIC subscribed Rs 20.6 Billion.
During the FY2019,the trust signed definitive agreements to acquire Rs 115 Billion worth transmission assets from Sterlite Power.
During the year ended March 31, 2020, the Trust raised Rs 25,140.48 million of primary capital through a qualified institutional placement of units. The Trust issued and allotted 299,683,881 units at a price of Rs 83.89 per unit as per the placement agreement dated 04 May 2019.
During the year 2019-20, the trust completed three acquisitions with assets worth more than Rs 60 billion. While NRSS XXIX Transmission Ltd (NTL) and Odisha Generation Phase II Transmission Ltd (OGPTL) were acquired in H1 of the financial year.
As on 31 March 2020,trust's asset count of 20 transmission lines and 4 substations across 12 states and one union territory.