In an announcement on Friday, VRET said it signed definitive agreements with BSE-listed IndiGrid, country’s first and largest power transmission InvIT, to buy all units of VRET along with its investment and project managers.
Through an exchange notification, IndiGrid said its board had approved the “proposed acquisition of 100 per cent of units in Virescent Renewable Energy Trust…. 100 per cent of the share capital of Virescent Infrastructure Investment Manager and Virescent Renewable Energy Project Manager…”
Sanjay Grewal, chief executive officer of VRET, said: “We are delighted to enter into this landmark transaction with IndiGrid, given our common strategic focus to expand our renewable energy portfolio and synergies across both platforms, after a highly competitive process.” Grewal did not confirm the transaction size.
Sources indicated the scale-up of the Virescent platform, both in terms of capacity and Ebitda, happened quicker than expected by the management, leading to the sponsor KKR exploring the exit route. For the year ended March 31, VRET’s consolidated revenue stood at Rs 537 crore with an Ebitda of Rs 425 crore, said the firm’s public statement.
IndiGrid was set up in 2016 and sponsored by investment company KKR and Vedanta group’s Sterlite Power. Its portfolio currently consists of 16 power projects, majorly power transmission. It recently branched out and started acquiring renewable energy assets as well.
IndiGrid Investment Managers is the investment manager of the InvIT and is majority owned by Electron IM, an affiliate of the KKR Sponsor.